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If you are in trouble financially, then you
may be tempted to answer an ad from a company
that tells you that they can give you an
entirely new credit identity, or remove bad
marks from your credit report&emdash;whether or
not they're true.
The truth is, there are no shortcuts to
building an AAA credit rating&emdash;it will
take time and a lot of effort on your part to
make it a reality. Meanwhile, there are some
scams and traps that you need to be aware of so
you won't fall victim to one of these
questionable credit repair companies. We've put
together some guidelines to help you in the
process.
First of all, be aware of any company that
tells you they can remove true marks from your
credit report. Generally, a credit repair scam
that tells that it's possible will try to
bombard the credit reporting agencies with
inquires and hope that they won't respond in the
given time-period. Or will simply take off the
remarks to stop the incoming letters. Here's the
truth: even if the scam operation does manage to
get a few bad remarks removed from your credit
report, they can always be added on again should
the lender prove that the bad marks were
true.
Next, run as fast as you can from any company
that offers to get you a new credit identity!
Not doing so could land you in jail! Why?
Because their mode of operation is to get you to
apply for a tax identification number, which has
the same amount of digits as your social
security number, and then use it whenever
applying for credit. The number will come up
"clean," and you won't have to pay the
consequences for your past bad marks. Now,
here's the downfall. Lying to the federal
government about your intended uses for a
federal ID number is a federal
offense&emdash;and guess who will take the rap?
That's right&emdash;you&emdash;the person who
actually filled out the forms "under penalty of
law."
Another sure sign that a company is operating
a scam, and not a true credit repair company, is
if they try and pressure you into signing a
contract with them. They will likely want large,
upfront fees and will tell you that the offer
expires today, or use some other high pressure
tactic. A company that is truly concerned about
helping you to repair your credit will never
pressure you or try and trick you into signing a
contract with them. In addition, they will make
it clear to you, that if you do change your mind
within three days of signing, it's the law that
you will be release from any obligation.
Finally, you should accept that fact that no
one can "repair" you credit if you've truly made
some errors in the past. The only way to build a
good credit report is to pay your bills on time,
not extend your credit limits, and be careful
not to apply for too many credit lines. Do all
of these things on your own and you'll soon find
yourself with a great credit report!
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