Credit Repair Scams – How to Actually Repair Your Credit
If you have a poor credit rating, the promises made by credit repair companies, to provide clean credit histories and access to fresh lines of credit, may seem like a dream come true. Unfortunately, these offers are too good to be true and may leave you in even worse shape than when you started. Here are some of the critical facts you should know about credit repair scams.
Fraudulent credit repair companies often:
- Demand payment upfront;
- Fail to explain your legal rights;
- Instruct you to provide inaccurate information to credit reporting agencies or lenders;
- Dispute accurate information on your credit report; and
- Tell you not to contact or respond to credit reporting agencies yourself.
Companies offering “new credit identities” often charge a fee for what they call a “credit profile number” or “credit privacy number”. These companies will instruct you to apply for credit using this new number. These numbers are often either stolen Social Security Numbers (SSN) or fraudulently obtained Employer Identification Numbers (EIN). Using a fraudulent SSN or EIN is a federal crime and you could be held responsible. Penalties may include steep fines or possible jail time.
The process of improving your credit score takes time and effort, but it can be done. With help from a VCCDC counselor you can take the necessary steps to a financially stable future. VCCDC’s counselors will give you a detailed analysis of your credit report so that you understand what everything on it means. They can also help dispute inaccurate information on your credit report. They may also help you negotiate payment or settlement agreements for outstanding debts and assist you with creating a household budget to pay these debts. Call VCCDC today at 805-273-7800 to make an appointment with one of our counselors!