Mar. 11, 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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