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How to Avoid Credit Repair Scams
How to Avoid Credit Repair Scams
Scams are definitely not your morning to-do list. These too-good-to-be-true schemes can really ruin your financial history, especially regarding credit-repair scams. Some people take advantage of others who are desperate to rebuild their credit scores, but despite this, you should be vigilant and avoid these scams at all costs.
Credit reports make or break a person’s ability to get insurance or even a loan. Sometimes, this can affect how a person is hired. It may be painful to redeem one’s credit score, but some people are not afraid to abuse people who need a fix, so here’s what you need to prevent being scammed.
Avoid Outrageous Claims
Never trust companies that are built on the claim that they can restore your credit in no time. The Federal Trade Commission states that bad credit can be lessened, but you have to work for it or even wait it out. Negative information on your credit report that is recent and accurate cannot be removed for a specified amount of time.
Outrageous claims can easily draw you in, but you have to be very vigilant not to be swayed these scams.
Firms Should Properly Educate Clients Beforehand About Credit Repair
Any firm that is legitimate and with a proper course of action for your credit repair will educate you on the basic focus of credit repair before they provide you their services. This means that they tell you how it could be done on your own if you are dedicated, disciplined, and available. They will also inform you on how credit reports are present to provide you with your credit history that potential insurance companies, employers, or creditors will take note of. Your career will also depend on how well your credit history looks.
If your credit report does not look good, a firm may deny you the privileges such as credit, loan, insurance, or even employment. But, because of this, you can request a free credit report as long as you do it within 60 days of the denial.
You can also receive a free copy of your credit report once a year, every 12 months, specifically. You can get this from one of the three national credit reporting companies as it is a requirement for information provisions by the Fair Credit Reporting Act.
Take note if a credit-repair company persuades you from contacting a major credit reporting company. This is not in your best interest, so avoid them or stop the transaction immediately.
When you request your free annual credit report, make sure that you channel it through the following address to avoid any cost. If you don’t, you may be charged more and this is clearly what you do not want.
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
Never do Up Front Payments
Any credit-repair firm that is legitimate shouldn’t ask you for upfront payment. They should show you that the work was completed and the FTC was noted. According to the Credit Repair Organizations Act, you can seek out legal support if the case arises that you are forced to pay.