Most Credit Repair Companies Are Scams
by Brandon Cornett
It is particularly despicable when companies prey on people who are in financial distress. Unfortunately, there is no shortage of such companies. Just take a look at the mortgage industry and the current economic recession we are in. With so many people facing foreclosure on their homes, there has been a huge rise in foreclosure prevention scams and similar rip-offs.
For a long time, there has been a predatory side of the credit industry as well. In particular, I’m talking about credit repair companies and the bold (and often false) promises they make.
You Can Fix Your Own Credit Reports
Let me start with the absolute truth at the core of my argument. There is no company on the planet that has special powers over your credit report. The only thing these “repair” companies can do is help you make corrections to your credit report, which is something you can easily do for yourself. In fact, there are hundreds of articles online (from reputable sources) that can help you make such corrections. And you can do it for free — without spending a dime on anything.
Credit Repair Scams Tracked by the FTC
A lot of the so-called credit repair companies will make bold promises about what they can do, and they will make it seem as if they have special access to the reporting bureaus. This is simply not the case. How do I know this? Because the FTC investigates more complaints against this industry than just about any other industry. Visit the FTC website and do a search for credit repair, and you’ll quickly see what I mean.
My best advice is to scratch the word “repair” from your credit dictionary, and replace it with the word “counseling.” Better yet, replace it with the phrase nonprofit counseling, because there are plenty of these services available all over the United States. A nonprofit credit counselor will help you make corrections to your credit report and otherwise improve your financial situation, and they will do it for little or no cost.
A credit repair company, on the other hand, will generally ask for upfront fees because they know they cannot deliver on their bold promises. Consider yourself warned and educated on this dirty little secret of the credit industry.
© 2009, Cornett Communications.
About the Author: Brandon Cornett is a consumer advocate and publisher of the Home Buying Institute. You may visit the author's website at http://www.homebuyinginstitute.com/ to learn more about this topic.
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Friday, September 18, 2009
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There are companies that will attempt to repair your credit report for you. Most of these companies will charge a large up front fee or monthly installments. The results vary widely from company to company and because most charge by the month they will intentionally drag the process out to maximize their profits.credit repair company
ReplyDeleteFirst, it’s worth noting that the operative word here is ‘reputable’. There’s a difference between a company that is working to help you boost your
ReplyDeleteand one that is just trying to give you yet another loan disguised as a solution to all your credit issues.Are you looking
for reputable credit repair companies That’s important to remember, and highlights why it’s vital that you pay careful attention to what a credit company’s reputation is.With that in mind, here’s a quick rundown of some of the key reasons
a good credit repair company might be worth contacting.