July 5, 2022

Credit Repair: Know Your Rights and How To Spot A Scam

“We have all heard the old adage “”If it seems too good to be true, it probably is,”" and that applies to just about everything in life, including credit repair. According to statistics, Americans, as a whole, are over $1.2 billion in debt. With that number, that averages to approximately $5,000 for each American citizen. What is even more surprising than that is the fact that this is non-mortgage debt, so the estimated number would be even more than that staggering figure.

With the amount of money that each American is in the hole for, it is no wonder that more and more people are looking for ways to get out. There are too many reasons to list why there is so much debt, but the fact remains that we are. The reasons can be anything from job loss to excessive spending, but that does not change the fact that many people are trying to find a way out.

When it comes to repairing one’s credit, there are very many things that people are not even aware of. Offers of credit repair services are on the internet, on our television sets, and in our mail boxes. It is not hard to see why so many people are using these companies. Their claims of restoring one’s credit is very appealing to anyone trying to purchase a car or home, or even find employment. What people do not realize is that anything these companies can do for it’s customers can be done by the customers themselves for free or a fraction of their preposterous fees.

According to the Federal Trade Commission’s website, there are not only ways to help yourself to improve your credit score, but also ways to spot companies who do not have your best interest in mind. The Credit Repair Organization Act gives a few ways to recognize if credit repair companies are legitimate or not. Companies requiring payment up front for the services they provide and those who do not inform you of the things that you can do on your own to repair your credit are not legitimate. Another big no-no that should send up a red flag is the company’s advising customers to apply for an Employer Identification Number to use instead of a Social Security number in an attempt to invent a new identity. If the company should tell you to not contact any of the three major credit reporting companies yourself, steer clear. Boasts and promises of being able to rid you of all of your negative credit information, including current and accurate information, should also be an indicator of non-legitimate business practices.

According to the Fair Credit Reporting Act (FCRA), every individual is entitled to one free credit report from each of the three major credit reporting agencies once during every 12 month period. Individuals are also eligible for free credit reports if they are unemployed and are planning to look for employment within the following 60 day period.

Americans trying to get ahead, become debt free, and enjoy a better life should really take heed and avoid getting taken advantage of. After all, it is our credit that we are dealing with, and we always have our best interests at heart, so taking control of repairing it should be our responsibility first.”

Additional information at:

Federal Trade Commission

Credit Repair: How To Help Yourself

Family Debt-Statistics

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