Dont Fall for Credit Repair Scams

We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering from a less-than-stellar credit rating, those headlines may seem like the answer to a prayer.

The only problems is, those programs don't work, and to add insult to injury, you'll find yourself paying hefty fees to those companies, only to end up right where you started, or worse. Sometimes, what is couched as a credit repair program may actually be an attempt to steal your identity by gaining information about your social security number, bank accounts, and credit cards.

Here's how the credit repair scam generally works:

First, the company will contact the various credit bureaus and tell them that the negative information contained in your files is false. Since they want to accurately reflect your credit information, the credit bureaus will temporarily remove the negative information while they investigate the claims. Meanwhile, the scammer sends you a copy of your credit file, showing that the negative information has been removed, claiming that your credit history has now been repaired.

It will seem like a miracle, until you learn that as soon as the credit bureaus have completed their investigation, any accurate negative information will be returned to your credit report, and you'll be back where you started, minus the fees that you paid to the scammer.

The key concept to remember when it comes to your credit report is that accurate entries will stay on that report for seven years from the time they're reported to the credit agencies. Bankruptcies stay on a report for fourteen years.

There are many honest companies that can help you with debt problems. But how can you know if a company is legitimate? First, scammers will ask for their money up front, while legitimate credit repair companies can't require payment from their clients until they've performed the services they've promised. In many states, they must also give you a detailed written contract, clearly explaining your legal rights and giving you the option to cancel within three days.

The bottom line: know who you're dealing with when it comes to trying to repair your credit. Mistakes can cost you dearly, doing even more damage to your credit, creating even more debt problems, and sometimes costing large amounts of money.

Copyright © 2005 Jeanette J. Fisher - All Rights Reserved.

Forget what you've been told about credit. "Credit Help!" author Professor Jeanette Fisher was forced into becoming a credit expert. She loves helping people buy houses. Get the credit you need to buy one house or twenty. Visit Real Estate Credit Help Center: http://www.recredithelp.com

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/11/business/yourmoney/11money.html%3Femcid=1256774157ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNH8YRf8JHmpdOJ1SL2vmcmQOoKycQimg src=http://news.google.com/news?imgefp=rhwaZ71oGCsJimgurl=graphics8.nytimes.com/images/2008/10/11/business/11money.190.jpg width=80 height=66 alt= border=1brfont size=-2New York Times/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.newsday.com/sports/olympics/sns-yourmoney-1012credit,0,107333.storycid=1256774157ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNEAzhiAszb7JEWpaUd3IGzuUAVJSgbCredit/b cards, bcredit/b crunch: consumers feel pinch as issuers `go b.../b/abrfont size=-1font color=#6f6f6fNewsday,nbsp;NYnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1The bcredit/b crunch and weak economy also are taking a toll on bcredit/b cards. Perhaps you have noticed that you#39;re receiving fewer offers for bcredit/b cards in b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nytimes.com/2008/10/11/business/yourmoney/11money.htmlcid=1256774157ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNEPgG1_C2rsXy8DTdsTQBpgQxDp5wYour Money One Thing You Can Control: Your bCredit/b Score/a font size=-1 color=#6f6f6fnobrNew York Times/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256774157hl=ennobrall 16 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.startribune.com/business/30847109.html%3Felr%3DKArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUlcid=1256838914ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNEOSyVmCBhO1c_t-pSJCr5Y3GiuSwbCredit/b squeeze strangling businesses/abrfont size=-1font color=#6f6f6fMinneapolis Star Tribune,nbsp;MNnbsp;-/font nobr4 hours ago/nobr/fontbrfont size=-1Minnesota entrepreneurs are finding that they can#39;t find bcredit/b for their good business ideas. By HJ CUMMINS, Star Tribune You ever tried the product? b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://sify.com/finance/fullstory.php%3Fid%3D14774085cid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNHy6GqwmD8etnNmsT-XBjUkiy_3dwimg src=http://news.google.com/news?imgefp=KZJn5j1AWJEJimgurl=im.sify.com/sifycmsimg/sep2008/Finance/14757634_George_Bush_220.jpg width=80 height=55 alt= border=1brfont size=-2Sify/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20081011/g7_meeting_081011/20081011%3Fhub%3DCTVNewsAt11cid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNHS--WJh-ay8joLCVWClveAd1fkZwIMF endorses G7 plan to fight global bcredit/b crisis/abrfont size=-1font color=#6f6f6fCTV.ca,nbsp;Canadanbsp;-/font nobr14 hours ago/nobr/fontbrfont size=-1The International Monetary Fund is backing a plan by Canada and the other G7 countries to fight the worldwide bcredit/b crisis, which continues to play havoc b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.guardian.co.uk/world/2008/oct/10/georgebush-creditcrunchcid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNFERwicpsgMzilIN9BbnZmBFvDnKABush urges confidence in government#39;s ability to rein in bcredit/b crisis/a font size=-1 color=#6f6f6fnobrguardian.co.uk/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.kxmb.com/News/284670.aspcid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNFvk37MQGr6CBkbULghXfMWywmgtgbCredit/b crisis meetings...Stimulus bill...Baseball playoffs b.../b/a font size=-1 color=#6f6f6fnobrReiten Television KXMB Bismarck/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.rnntv.com/Global/story.asp%3FS%3D9163035%26nav%3Dmenu566_2cid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNHkDOktORHZXUxm3UffuujJZqoBEgWorld powers pledge to combat bcredit/b crisis/a font size=-1 color=#6f6f6fnobrWRNN/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://scotlandonsunday.scotsman.com/business/Europes-leaders-hold-more-crisis.4583297.jpcid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNEtOmbADbYlePALjMNCVTLmfWtnsQnobrScotland on Sunday/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.news24.com/News24/World/News/0,,2-10-1462_2408555,00.htmlcid=1256517725ei=0yDySL3PNYyQ6wPznJn6BQusg=AFQjCNEjDQUdiJMARoAT7FW5rzTkP-9ZIAnobrNews24/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256517725hl=ennobrall 2,101 news articles/nobr/a/font/div/font/td/tr/table
credit - Google News

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