In the issue of repairing your credit, it is best to do it yourself. Most often, you may hear or see advertisements claiming outstanding credit repair services offering you “legal” and “guaranteed” solutions for your credit problems. These services may use motto’s that are quite enticing to those who are in dire need of credit repair. There are even others who get easily convinced after reading “authentic” testimonials from several customers, who might not actually exist.

If you are struggling with a poor credit history and desperately need relief, it is essential that you immediately take action. However, you must take the steps yourself rather than handing it over to a third party. You don’t have to be vulnerable to credit repair scams. There are things you can do yourself and steps you can take to protect yourself.

The Fraudulence

Day after day, several companies appeal to consumers who have awful credit histories. Often, they promise to tidy up credit reports, for a price, to help consumers loan a car, mortgage a home, or even get a job. The horrible fact is they cannot deliver; you should keep this in mind especially if you do not want to worsen your debt. These companies would only take the cost of the services with them and vanish into thin air.

The Signs of a Scam

There are, however, some genuine credit repair services, so how can You separate the good from the bad? A sign that is an absolute give-a-away is when a company requests payment in advance for their credit repair services. Another indication that a service is scamming you is if it does not give information about their legal rights.

There are companies that advise consumers to directly contact a credit reporting agency – you should avoid such companies. More so, if the company you have responded to suggests that you to create a new credit identity and then make a new credit report by applying for an Employer Identification Number to use rather than you SIN, you should immediately stop contacting that company.

Lastly, those that advise you to argue all information included within your credit report or take actions that may seem illegal, i.e. generating a new credit identity, should be avoided.

Remember that you could be prosecuted for wire or mail fraud if you use the telephone or mail to apply for credit and give information that are not authentic. Lying on a credit application, misinterpreting your SIN and acquiring a new SIN from Revenue Canada under false pretenses are all federal crimes.

Most importantly, you should remember that included within the Credit Repair Organization Act is the rule that credit repair companies should not require you to pay until the services they have promised are complete.

The best possible way to avoid poor credit history, and totally keep you safe from fraudulent credit repair services, is to do a periodic credit report review. Reviewing your credit report is important because the information in your report affects your chances of getting an insurance or loan. Make sure that the information is correct, complete and regularly updated before applying for a loan. Lastly, by doing periodic check-up on your credit report, you can be safe from identity theft, which can create a major problem not only in your credit report.

Tags: Finance