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Credit Repair Counseling ScamsIf you are considering credit repair counseling, here is what you should look for when deciding which service to go with. Many people turn to credit counseling services when they need credit repair and don't have the time to do it themselves. Also, credit repair can be a complicated issue, so if you feel overwhelmed and short on time, a credit counseling service may be the right fit for you.
Look for a non-profit service or one where you pay for results, not upfrontYou should be cautious of companies that suggest you do not contact the credit bureaus directly, or one that suggests anything to you that sounds illegal, like creating a new identity.A common scam is when a credit counseling company suggests you get a new social security number or a federal employee identification number (FEIN) and start using that in place of your social security number. This is illegal and if someone suggests you do this, run, don't walk away.
Read the fine print if they set up a payment plan with your creditorsIn some cases the credit counseling service will set up a payment plan with your creditor. Make sure there is a written agreement that states the lender agrees to record your payments as being ontime and current under the plan. It should also state that all negative information is removed from the account.Credit repair counselors can really helpThe greatest benefit of using a service to repair your credit is their experience. A legitimate company will have years of experience and success repairing people's credit and removing negative items from credit reports.In many cases the credit counselors have developed relationships with creditors, lenders, and credit bureaus. They will use these to their advantage and go to bat for you when negotiating payoffs and removal of bad information. Credit repair counseling is beneficial. A few years ago my credit wasn't pretty. Not bad, but not too good. I refused to pay someone to do it for me and I now regret that decision.
I did have succees
repairing my own credit.
But now I would rather have someone else do the work for me. Its a personal decision whether you want to do the work yourself or have an expert do it for you. For information on do-it-yourself credit repair, check out my page on
fast credit report repair.
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