Credit Repair Scam - How To Avoid Being A Statistic?

A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Promises to "fix" your credit are always made by credit consolidation companies, but they are seldom true. Here are some of the important tips to avoid scams:

First things first. Negative information cannot be erased if the information is correct. Only inaccurate information can be corrected in your credit file. Credit file information remains on your record for seven good years from the time it is reported to the bureau. For bankruptcy, the information remains on your record for ten years. All the consolidated information about your credit bills you fell behind on, but are now paid, will remain on your report for the time period mentioned above.

Do not pay the credit repair company unless their promises are kept. Remember, the law is on your side. Federal law requires credit repair companies to give you a complete detailed explanation of your legal rights, a completely documented written contract, and above all, 3 days to cancel. This applies to all credit repair services including for-profit services, non-profit services, creditors and credit unions.

Be wary about emails you receive. When you hover your mouse over the link in the email, you will know for sure if it is a trusted website or a fraudelent one. If fraudelent, report it to your bank promptly.

You don't need a counselor to correct your mistakes in the credit report. Take charge of it yourself. If you were recently denied credit, you can request a free credit report. Otherwise there is a small charge for it. Some states will allow you a free copy of your credit report once a year. It doesn't cost you anything to dispute or question items in your credit report. Get online or follow instructions from your credit bureau. The three major credit bureaus are Equifax (800- 685-1111), Experian (800-682-7654) and Transunion (800-916-8800). In most cases you will need to contact all the three credit bureaus as the information they have about you may vary.

Remember that you can't create a second credit file. Some of the fraudelent companies will offer to provide the consumers with a different social security number (tax identification number if ssn does not exist) in order to create a new credit file for the consumer. Such a practice is called as file segregation. File segregation is illegal and does not work.

Whereever possible, add explanation to your credit report to prove your point. If you have legitimate reasons for not paying certain bills on time (switching jobs, illness), or if you refused to pay because of a dispute, send the bureau a statement to be tagged with your credit report. Each lender who pulls your report will be aware why you fell behind on those bills.

Counseling might be a good option. Find a good non profit consumer credit counseling service in your neighbourhood. Get online or open your yellow pages to find one. Seek the guidance of friends and family members. Select a counselor, meet them in person to make sure they are right for you. Ask them on tips and advice on how to build a good credit history. If you are still lagging behind on your payments, credit consolidation firms will be able to set up a payment plan with your creditors. If money is an issue, select a non profit credit counseling service. They will offer their service for free or for a very low cost.

Ameri credit services provides credit counseling and credit consolidation to customers. Visit us at http://www.americreditservices.com for free credit consolidation articles, free credit counseling tips and non profit credit management services.

---

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account with an 8.9% interest rate and then later realize that their interest rate has been bumped to... Read More

Credit cards

If gold medals were awarded for marketing consistency, the credit card industry would be the Sarah Hughes of the business world. Major players Visa and MasterCard, who... Read More

Fair Isaac Corporation Credit or FICO Score

As I am not from the US, I had no idea what FICO meant before researching it. FICO stands for Fair Isaac Corporation, a company based in... Read More

Stop Struggling Because Of Poor Credit And Improve Credit Rating Now

Did you apply for a personal loan only to be turned down by a bank or lending institution? Like most people there is always a need to... Read More

The Art of Stoozing to Make Money from Credit Cards

Make Money from StoozingStoozing, this is a sophisticated method of making money from credit cards that offer 0% introductory periods, the method requires cast iron discipline in... Read More

10 Step Credit Repair Guide

The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but... Read More

Dealing With and Repairing Bad Credit

Bad credit can be a burden for otherwise good credit. It may not seem fair at times that financial mistakes in the past can haunt you in... Read More

Watch Out For Credit Repairs

It is very easy to find a site that is neat, professional-looking, and one that offers a free three-agency credit report and free credit report without a... Read More

Free Credit Reports - How to Maintain Your Credit Profile

Maintaining your Credit ProfileEvery consumer should be maintaining their credit profiles to ensure the highest scores possible. To do so, you must first order your credit reports... Read More

Getting Your Credit Report and Understanding Whats On It

If you intend to apply for a loan, you need to obtain your credit score. Understanding what this score means will allow you to make the loan... Read More

Credit Education

Having credit education is like knowing how to read. It will be necessary throughout your life.Once you learn it, you will know it forever. Once you establish... Read More

3 Ways to Improve Your Credit Score by 50 Points In Less Than 30 Days

In Less Than 30 Days. "What can you do to increase that set of three numbers on your credit report that can be so important with your... Read More

Saving Money: Quick Cash, High Cost

I didn't think it was possible. But it is. Folks, there is something worse out there than putting everyday expenses on a credit card, then carrying the... Read More

Online, Phone, U.S. Mail or In-Person: Where is Your Credit Card and Personal Identify Safest?

Identity theft is the fastest growing crime according to the Federal Trade Commission (FTC). It occurs when someone takes a piece of your personal information and uses... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States; Equifax, Experian and Trans Union. Each bureau collects your personal and financial information which is then sold... Read More

4 Steps to Creating Good Credit

As a consumer you've learned the importance of establishing a good credit rating with your lenders. Whether you are shopping for a new home or auto, or... Read More

Tired Of Being Broke?...Learn How To Force Banks To Give You Money!

Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never even considered being possible. Credit which will allow you to take the dream vacation of a lifetime,... Read More

Balance Transfers Can Help You Stop Putting Money Down The Drain!

As you probably know, interest rates are at all time low right now and if you aren't getting the best deal from your credit card company then... Read More

Avoiding Credit Card Traps

The next time you open your credit card statement, take a closer look at the small insert titled "changes to your credit card agreement". You know the... Read More

What Are the Most Common Ways to Commit Identity Theft or Fraud?

It's the number one source of consumer complaints at the Federal Trade Commission (FTC), and unfortunately, it's one of the simplest crimes to commit. Identity theft involves... Read More

The Exact Action To Take When You Find Errors In Your Credit Report

There are times when you may be turned down for credit and you do not understand why.According to the Fair Credit Reporting Act you are entitled to... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type of credit card they will carry in their wallets. There are so many options out there, and... Read More

Credit Cards

Credit cards are a form of unsecured credit. The issuer is extending you a line of credit, usually tacking on all sorts of little surprises in the... Read More

Useful Tips When Choosing Credit Cards

Chances are you have received your share of "pre-approved" credit card offers in the mail, some with low introductory rates and other perks. Many of these solicitations... Read More

Making Sense of Credit Card Fees

In addition to the APR (annual percentage rate) and the finance charges, most credit cards have a number of 'fees' associated with their use. Some fees are... Read More

Borrowing on a Credit Card

One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial... Read More