Credit Counseling Scams

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credit counseling scamsYou’ve seen the ads everywhere, “Contact us to erase your bad credit.”

But have you ever wondered if these services can deliver the claims they promise?

As more people face financial difficulty, foreclosure, unpaid debts, and negative credit scores, these scams will continue to rise. But, the truth is that you cannot pay anyone money to erase your negative credit.

If you have a legitimate negative credit situation it is against the law for anyone to try to erase that credit. Also, the tactics used are ineffective.

Most companies report negative credit on a monthly or regular time scheduled basis. Even if a company could remove one report, it would only resurface the next time the company made their report to the major credit agencies.

Many consumers aren’t aware that they are entitled to one yearly credit report, provided by all three major credit agencies free of charge. Additionally, anytime you are denied credit, you can request a free copy of your credit report from the company that provided the negative report.

If a credit counseling company tries to convince you that you must pay a fee for access to your credit report you can rest assured that they are operating a scam.

There are credit counseling companies that offer legitimate services and can help you take the steps necessary to repair your credit. However, there are just as many (and maybe even more) companies that operate on a fraudulent basis.

If you are considering working with a credit counseling company you should check their record and standing with the Better Business Bureau first. Additionally, stay clear of a credit counseling service that offers to repair your entire credit history for a fee.

If a company offers to create a new identity for you by changing your social security number, not only is this a sure sign of a scam, it can also get you in serious legal trouble.

If you think that you are involved with a credit counseling scam, you should contact a lawyer to discuss your case and consider taking legal action. This not only helps to prevent other consumers from becoming victims, but will also help you ensure your own safety as well.