Are Credit Repair Services Scams? Learn Why You Might Be Getting Ripped Off
Do not confuse the helpful services of an established credit counseling company with that of the often scrupulous credit repair service.
If you are desperate to fix your credit and want to speed up the process then by making the choice to pay someone to repair your credit, and in the shortest time possible, may be the worst move you can make.
They Are Widely Known For Getting A Lot Of People Into Trouble These credit repair services will generally use the strategy of challenging every last negative issue on your credit report.
This can be of some benefit, however, due to the fact that a portion will be wiped off of your report if the creditors and the credit bureau do not respond to these disputes within the legal time line.
What this means is that these negative debt and fractions will be gone in 30 days or less.
Sounds pretty good, right? What credit repair services fail to tell you is that while this tactic can free up negative information on your credit report, it will eventually backfire on you and show up again.
Credit bureaus do not play games and while they may have been slow to responding to your disputes, sometime in the near future all of that information will be verified and added once again.
A second strategy that credit repair companies use in order to help with your credit report is by assisting you establishing an entirely new identity.
This is done by using an EIN (employer identification number).
The thinking to the strategy is the idea that once you have a new identity number you can then start fresh by establishing new credit.
Again, sounds good and makes sense, right? No quite.
Credit repair companies are only interested in your money so that they can temporarily fix your issues.
Credit bureaus and lenders are onto this ploy and have been for years.
Whenever a new credit report shows up with no credit history that has very little activity (or none at all), they make it a point to research other ways to find out who you are.
And if you are ever caught and turned in to the authorities then you can be facing charges of fraud.
Why? Because you were trying to establish credit under a false identity, and with false pretenses.
In addition to using temporary tactics to help you regain control of your bad credit history, these credit repair services also have a habit of making false promises that can never be kept.
They are also very expensive.
If you are desperate to fix your credit and want to speed up the process then by making the choice to pay someone to repair your credit, and in the shortest time possible, may be the worst move you can make.
They Are Widely Known For Getting A Lot Of People Into Trouble These credit repair services will generally use the strategy of challenging every last negative issue on your credit report.
This can be of some benefit, however, due to the fact that a portion will be wiped off of your report if the creditors and the credit bureau do not respond to these disputes within the legal time line.
What this means is that these negative debt and fractions will be gone in 30 days or less.
Sounds pretty good, right? What credit repair services fail to tell you is that while this tactic can free up negative information on your credit report, it will eventually backfire on you and show up again.
Credit bureaus do not play games and while they may have been slow to responding to your disputes, sometime in the near future all of that information will be verified and added once again.
A second strategy that credit repair companies use in order to help with your credit report is by assisting you establishing an entirely new identity.
This is done by using an EIN (employer identification number).
The thinking to the strategy is the idea that once you have a new identity number you can then start fresh by establishing new credit.
Again, sounds good and makes sense, right? No quite.
Credit repair companies are only interested in your money so that they can temporarily fix your issues.
Credit bureaus and lenders are onto this ploy and have been for years.
Whenever a new credit report shows up with no credit history that has very little activity (or none at all), they make it a point to research other ways to find out who you are.
And if you are ever caught and turned in to the authorities then you can be facing charges of fraud.
Why? Because you were trying to establish credit under a false identity, and with false pretenses.
In addition to using temporary tactics to help you regain control of your bad credit history, these credit repair services also have a habit of making false promises that can never be kept.
They are also very expensive.
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