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Know Your Rights to Avoid Credit Scams!

Apr 11, 2008
To qualify for bank loans is getting tougher and tougher these days as banks and financial institutions have made the process very rigid. Considering this, there are several credit repair companies that are using this credit crunch to fill their pockets by taking advantage of those who want to get rid of their bad credit. Below are some tips that you can follow to defeat the plans of these perpetrators.

Lately, there has been a drastic increase in complaints against these credit repair companies. These services are nothing new and it is quite common to see advertisements of these organizations in print or electronic media. However, a significant part of these credit repair companies are scams.

In certain cases, consumers pay these companies a huge amount up-front. In return, these companies make several credit related promises such as erasing blemishes from the bad credit report, getting a new Social Security Number (SSN) or permitting them to take credit (piggybacking) from someones credit record. Piggybacking is referred to the process in which one can basically be put as an authorized user on someone else credit card to boost his/her own credit standing.

However, above all, always remember that no one can eliminate exact and timely negative information from a credit report. Second important thing is that it is almost impossible to have a new SSN.

In brief, all a credit repair company can do for you is to resolve your credit related problem for you that you can do on your own with some will, determination and knowledge of the ever changing credit laws.

Be Aware of Your Rights:

It is very important for you to be aware of the laws before you accept any credit repair offer. According to the law, a credit repair company should provide you with the copy of the consumer rights or disclosure if you respond to a credit repair offer. In this one page document, you get to know what rights you have in case you dispute erroneous information with the company.

Watch for Negative Indications:

If the credit repair company is not willing to inform you about your consumer rights or what you can do on your own, look for these indications. Never put your faith in a company that forbids you from contacting a credit bureau directly.

It is also important to bear in mind that you should not deal with a company that asks you to create an EIN number instead of a SSN. Also, the offers that let you take credit on someones good credit must not be believed.

Seek Authentic Help:

If you are facing some precarious credit problem, you can seek the Consumer Credit Counseling Services and avoid credit scams to a large extent. The counseling fee is minimal and even in certain cases you can get it for free.

In the end, you can take the help of a credit repair company to resolve your precarious financial condition, but make sure that you are aware of your rights so that you do not become the victim of credit scams.
About the Author
J Delgado is an expert in helping individuals restore there credit. To find out more about having foreclosures, bankruptcies, late payments and other derogatory items removed from your credit report contact him at creditexpert@scrupyourcredit.com or at: http://www.scrupyourcredit.com
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