What Are You Doing For Your Credit And Watch Out For Credit Repair Scams

The best way to repair your credit is to do it yourself. There are plenty of advertisements promising to solve your credit problems. In fact, many go so far to actually guarantee to legally fix bad credit reports. These ads are written to appeal to people whose credit desperately needs to be repaired. Often they are sucked in by authentic looking testimonials that are, more often than not, complete fabrications.

If you are struggling with a poor credit history and desperately need relief, it is essential that you immediately take action. However, you must take the steps yourself rather than handing it over to a third party. You don’t have to be vulnerable to credit repair scams. There are things you can do yourself and steps you can take to protect yourself.

Fraudulent Credit Repair Services

Vulnerable people who have a poor credit track record are targeted by many unscrupulous companies who promise them a magical solution to their problems. For a price, that is. They not only promise to tidy up your credit report but to also help qualify for loans and insurance. Instead of improving your financial circumstances these credit repair scams can do you real harm. Such businesses regularly vanish into thin air.

The Signs of a Scam

If you had responded to a credit repair service, there are warning signs that can help you determine an authentic credit repair offer from a fraud. Firstly, be aware of companies that wish for you to pay the cost of the repair before providing any services. In addition, avoid those companies that do not divulge any possible legal rights you are entitled to and what processes you can do yourself without payment.

Some companies advise people to directly contact credit reporting agencies themselves. It is best to avoid businesses that give this advice. In particular, avoid businesses that recommend you apply for a new Employment Identification Number in order to create a new credit identity and credit history. This is fraud and can lead to criminal prosecution. Don’t even be tempted to get involved with companies like this.

Lastly, those that advise you to argue all information included within your credit report or take actions that may seem illegal, i.e. generating a new credit identity, should be avoided.

Remember that you could be prosecuted for wire or mail fraud if you use the telephone or mail to apply for credit and give information that are not authentic. Lying on a credit application, misinterpreting your SIN and acquiring a new SIN from Revenue Canada under false pretenses are all federal crimes.

Most importantly, you should remember that included within the Credit Repair Organization Act is the rule that credit repair companies should not require you to pay until the services they have promised are complete.

The best possible way to avoid poor credit history, and totally keep you safe from fraudulent credit repair services, is to do a periodic credit report review. Reviewing your credit report is important because the information in your report affects your chances of getting an insurance or loan. Make sure that the information is correct, complete and regularly updated before applying for a loan. Lastly, by doing periodic check-up on your credit report, you can be safe from identity theft, which can create a major problem not only in your credit report.