Credit cards are great, but if not used with common sense and self-control, can easily break your bank and peace of mind. If youve been broken by your credit card, credit repair services are easily available in every state and online to help you. But which credit repair services are legitimate? The Federal Trade Commission (FTC) has come up with some safety tips for those of you to choose a credit repair or debt reduction service.
What to Look for in a Scam
Just as there are many different options of credit cards, you will find as many, if not more debt reduction companies to match. When looking for a service to help you, make sure they follow federal laws. Most importantly, if a company makes outlandish promises, you should be suspicious. These companies should have one goal in mind - teaching you better money management for life, not using various services to fix the problem temporarily. Therefore, if you read advertisements for quick fixes, rather than financial education, beware. Some of the more common statements made associated with a scam include the following:
Repair your credit " 100% guaranteed (this is impossible) Get a new credit identity (this is illegal) Get all bankruptcies, low credit scores and liens from your credit file eliminated (ditto) No credit problem to bad for us to fix (this means they are stupid)
To help get rid of your debt by credit card, credit repair services are required by federal law to let you know of what actions you can undertake for free. For example, if they insist that you have to pay to get your own credit report, get up and leave.
All you have to do to get a copy of your reports from Experian, Equifax, and TransUnion is to request one in writing, fill out an online form, or call them on the phone. Now, if you want to find your credit score, which is different from the credit report, you would typically be charged a small fee.
Understanding the Credit Repair Organizations Act
Because credit repair services are actual businesses, they are strictly regulated by the Federal Trade Commission. To ensure you are protected, a law was established called the Credit Repair Organizations Act, which states that all debt reduction companies must inform you of your rights prior to any money being paid for their services.
In addition, these companies are not allowed to charge you until all of the work is done. Therefore, if any false claims are made regarding the services offered, you have the responsibility to let the FTC know. After all, this would be illegal action on the part of the debt reduction company. - 15224
What to Look for in a Scam
Just as there are many different options of credit cards, you will find as many, if not more debt reduction companies to match. When looking for a service to help you, make sure they follow federal laws. Most importantly, if a company makes outlandish promises, you should be suspicious. These companies should have one goal in mind - teaching you better money management for life, not using various services to fix the problem temporarily. Therefore, if you read advertisements for quick fixes, rather than financial education, beware. Some of the more common statements made associated with a scam include the following:
Repair your credit " 100% guaranteed (this is impossible) Get a new credit identity (this is illegal) Get all bankruptcies, low credit scores and liens from your credit file eliminated (ditto) No credit problem to bad for us to fix (this means they are stupid)
To help get rid of your debt by credit card, credit repair services are required by federal law to let you know of what actions you can undertake for free. For example, if they insist that you have to pay to get your own credit report, get up and leave.
All you have to do to get a copy of your reports from Experian, Equifax, and TransUnion is to request one in writing, fill out an online form, or call them on the phone. Now, if you want to find your credit score, which is different from the credit report, you would typically be charged a small fee.
Understanding the Credit Repair Organizations Act
Because credit repair services are actual businesses, they are strictly regulated by the Federal Trade Commission. To ensure you are protected, a law was established called the Credit Repair Organizations Act, which states that all debt reduction companies must inform you of your rights prior to any money being paid for their services.
In addition, these companies are not allowed to charge you until all of the work is done. Therefore, if any false claims are made regarding the services offered, you have the responsibility to let the FTC know. After all, this would be illegal action on the part of the debt reduction company. - 15224
About the Author:
Learn more easy-to-follow debt control methods on the Debt Smackdown website. Stop scraping by every month, never getting your debt paid off. Learn how you can get out from under your debt at DebtSmackdown.com
