As an American consumer, you probably have lots of debt and may even have gotten behind on some of your payments. If so, your credit score is probably not so good and you’re wondering if some of the credit repair services you have read about are legitimate. You’re not alone and there are some important things you need to know before even considering using one of these services. Many of these companies claim that they can remove bankruptcies and liens from your credit history forever and that they have means to erase all of your bad credit reports on file. Be very, very cautious and don’t fall for one of these schemes. There is no way that your bad credit will go away on its own other than you applying a conscious effort to improve it.
Most credit repair companies charge a fee for “cleaning up” your credit history and make idle promises to get you approved for a home mortgage, car loan and other purchases that you have been unable to make. These companies take your money for a job that they legally cannot do. They absolutely cannot improve your credit rating in the ways that they advertise. They want their fees “up front”, even before they have performed any services for you. They don’t help you at all in finding ways to help yourself and your rights as their customer is not fully explained. They encourage you not to contact any of the three major credit reporting companies in the United States. Some of these companies even go so far as to recommend that you quit using your social security card and apply for an Employer Identification Number in an effort to come up with a new credit identity. Don’t fall for any of these gimmicks and idle promises because the chances are that these credit “services” are there for one thing only. They want to get your money and not deliver on their promised services.
Be extremely careful if you choose to use a credit repair service to solve your continuing credit problems. They may encourage you to do things illegally and even commit fraud. If you follow their advice, you could very well end up in deep legal trouble. Do not give untrue information on a loan or credit application, do not misrepresent your social security number and absolutely do not try to get an Employer Identification Number from the IRS unless you have a legitimate right to do so. All of these things are federal crimes.