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"Erase Bad Debt !"
"Remove Negative Items From Your
Report"
You've probably seen these headlines and
others just like it promising to clean up or
"fix" bad credit. For someone who suffers from a
bad or poor credit rating, these headlines are
certainly an appealing offer.
Imagine finally being able to buy that new
car, get debt collectors off your back, and
enjoy a new found freedom from your past
debts.
Sound to good to be true ? It probably is.
Once you fall prey to the credit repair offer
and pay the hefty fees involved to clean up your
record, here's what happens:
1) The credit repair scam artist contacts the
credit bureaus and reports that the negative
information in your file is false.
2) The credit bureau removes this negative
information from your report while they
investigate the claim.
3) The scam artist will then show you the
cleaned up version of your credit report and
"ta-da" your credit history has been fixed!
But here's what the scammer doesn't tell or
show you. After the credit bureau completes
their investigation the negative information is
placed back on your credit report.
Negative but accurate information cannot be
removed from your credit profile. Only incorrect
information can be removed.
Accurate information remains on your credit
file for a period of 7 years from the time it is
reported to the credit agencies; a bankruptcy
appears for a 10 year period.
Many legitimate companies exist that can help
you with your debt problems. But how do you spot
a scam offer ? Easy, they'll ask you for their
fees up front. By law, credit repair agencies
cannot ask for payment until they've provided
the service they promised.
Additionally many states require that a
credit repair service, whether they are
for-profit or not-for-profit, must provide you
with a detailed written contract, an explanation
of your legal rights, and the opportunity to
cancel any signed contract within 3 days.
Also, be aware that a "credit repair offer"
could be an attempt to steal your identity by
getting you to provide personal information such
as a Social Security number, bank account and
credit card account numbers.
Always make sure you know who you are dealing
with before accepting any offer to help you
repair your credit. Those who don't can have
their credit ruined further and create more debt
problems.
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