Archive for the ‘credit repair company’ Category

Top 10 Credit Report Repair SCAMS – Consumer Beware

Friday, February 29th, 2008

I am sure we have all heard that you can get your credit report repaired if you hire a credit restoration company. They can repair it usually as long as you pay them around $1000.00 bucks to do so. According to the FTC, a credit repair company is not supposed to collect money from you until services are rendered. Hmmmmmmm. Good luck finding someone that will do that. Ok, here are the SCAMS.

1. I will increase your Credit Score 150 points in 30 days.
2. I will remove late payments on your credit report, even though you were actually late.
3. Don’t pay collections it hurts your credit
4. We can remove collections even though you owe the debt
5. We can remove Bankruptcies even though it’s still within 7 years.
6. We can remove a foreclosure, even though it’s still within 7 years.
7. We can remove judgments, even though you owe it.
8. We can remove tax liens even though you owe it.
9. If the balanced reporting is incorrect we can get collection removed
10. If the Bureaus do not respond to a dispute within 30days, they have to remove item in question.

I am sorry folks, but if you have debt you owe, it will be on there for 7 years from original collection date. No one can delete a debt you owe. I promise. Here is a good link for FTC facts on credit report repair SCAMS. Don’t get me wrong, there are credit restoration companies out there that provide disputes for inaccurate information, and are not SCAMS. Typically credit repair companies prey on the desperate, and take advantage of them. So be careful. I would also recommend pulling a current copy of your credit report, and make sure everything on there is accurate. You can actually do everything credit repair companies do for a fee for free yourself. You can go here for quick guide on how to dispute your credit report.

Author: Mike Clover

Common Credit Mistakes – That affect your Credit Score

Thursday, January 31st, 2008

Your credit score could be affected by little mistakes made on your part. These mistakes are made all the time, and most don’t realize the impact on your credit report and credit score. We have seen these common problems quite often, even though you are providing help for a family member or friend.

Co-signing for loans:

One of the most common credit mistake is co-signing on a loan for friends and family members that don’t pay there bills. Yes you thought you were helping someone out, but in return hurt your personal credit. Over the years we have seen more and more people helping out other people with loans, and there credit report is littered with late payments. The result is sorry we cannot help you with the loan you are applying for because your credit score is too low. Late payments will drop your credit score 100 points. So if you had a 700 FICO score, now you have a 600 FICO score. So don’t co-sign for someone else. They need to learn how to establish credit on there own.

Closing Credit Card Accounts:

Fair Isaac Corporation does not recommend closing out credit cards, especially if the card is in good standing. Once you close out a card that is a good revolving line of credit, you just dropped your scores. This credit was reporting in good standing with a credit limit, the credit limit is a part of your credit score. So if you close it, you score will drop due to good credit being removed.

No Credit Cards will hurt your Score:

If you thought it was ok to avoid having credit cards you are wrong. Fair Isaac recommends having credit cards, but use them responsibly.

High Credit Card Balances:

High credit card balances will lower your credit score as well. According to Fair Isaac your balance should not be more than 30% of credit limit. The lower your balance is the higher your credit score will be. This is the quickest way to increase your credit scores.

Don’t give up:

Maybe you have made some mistakes, and now you are on the road to recovery. Remember your credit is just a snapshot of your credit during a particular time. You can always improve your credit by paying down your balances, and being on-time with your payments to creditors.

Credit Repair

Thursday, November 29th, 2007

You may have bad credit due to some irresponsible moves or some unforeseen events in your life. Protecting your credit score could prove to be very important to your future. There are lots of ways to keep your credit good, but if it’s already looking pretty bad, consider some repair options. One way is to go through a credit repair organization.

If you think you should use a credit repair company to fix your credit problems, you should educate yourself first. Credit repair companies can make a lot of promises, but be careful who you give your information to. There is a lot of deception going on in this industry and there are a few signs that you should look out for.

First, if they ask you for any money up front, then it isn’t a legitimate or ethical company. The Credit Repair Organizations Act says that companies aren’t allowed to ask you for any money until everything that they have promised has been completed. So this should be something that you are mindful of.

Secondly, they should always inform you of your legal rights and the steps that you can take yourself to repair your credit. Crazy promises to remove all bad things from your credit should be ignored. No one can do this. You can investigate your credit files to dispute any inaccurate or incomplete information, but you can’t make negative information just vanish. If a credit repair organization tells you not to contact a credit reporting agency yourself, you should probably hang up the phone and do just that. Anything that a credit repair company can do for you, you can actually do for yourself, for free. Research a little online and find out what your rights are under the Fair Credit Reporting Act.

The Credit Repair Organizations Act is in place to protect you. If you decide to go with a credit repair company, then you should familiarize yourself with the basics of this act before you proceed. We’ve mentioned that they can’t charge you until they’ve completed everything that they’ve promised, but you should also know that they must provide you with payment terms for their services. They must inform you of all fees and a final total amount that will be due. They must give you a detailed description in writing of everything that they plan to do. They have to give you a time line in which the process will be completed. Any guarantees must be in writing and included in the contract. The company’s name and address must also be included on the contract.

Before you sign anything, they must provide you with a copy of the Consumer Credit File Rights Under State and Federal Law. They can’t start working on your credit until they have a signed contract in hand and have completed a three day waiting period. Anytime during the waiting period you have the right to change your mind and cancel the contract, owing nothing. Keep your rights in mind throughout the process and educate yourself before you start. Remember, anything they can do for your credit score, you can do yourself for free.

Author: Mike Clover

Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.