Mar. 12, 2015
Dear Cathy:
I have had bad credit for the past
10 years but I am at the point in my life where I would like to clean up my
credit. I am thinking about using a credit repair service to help me. Are
there any reputable agencies out there or are they another scam? Bad Credit, Oregon
Dear Bad Credit:
The companies that advertise credit
repair services appeal to consumers with poor credit histories. Credit
repair scams offer to erase accurate negative information from your credit file
so you can qualify for a credit card, auto loan, home mortgage, or a job.
Rebuilding a credit report is not a
quick fix situation and takes approximately one to two years. It
generally takes about two years for 30% to 40% of people with bad credit to
turn things around. Don’t fall for the credit-repair scams that promise
to fix your credit overnight.
Reestablishing credit by making
payments on time after a period of late payments will help to raise your credit
score over time. Making payments on time establishes a good credit standing.
These credit agencies closely monitor how you pay all your bills.
Having a good credit rating is valuable, and it’s something you’ll want
to protect.
For many, it’s simply a matter of
cutting back on clothes, cable TV, and other leisure items that you don’t
necessarily have to have. It might mean downsizing an automobile and
opting for a smaller, less expensive car, or simply making a decision to use
public transportation for the immediate future.
Not only can’t they provide you
with a clean credit record, but they also may be encouraging you to violate
federal law. So yes these are scam artists who promote these services.
Again only time and effort along with a personal debt repayment plan will
improve your credit.
If you follow their advice by lying on a loan or credit application, misrepresenting your Social Security number, or getting an Employer Identification Number from the Internal Revenue Service under false pretenses, you will be committing fraud.
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