Credit Repair Debt Consolidation

People who have experienced financial difficulties and have less than satisfactory credit reports often become the aim of credit repair & debt consolidation companies claiming the ability to fix all their credit & debt problems. Though some of these companies may be legitimate, many are only running scams and should be avoided at all costs. Their promises to settle all your debt for pennies on the dollar and remove everything negative in your credit report like bankruptcy or judgments, especially when accompanied by an absolute guarantee, are usually always without basis and totally false. They will simply charge you exorbitant fees for accomplishing nothing that will improve your credit.

There are indicators that might make you somewhat suspicious of these companies. For instance, you should back away if the debt consolidation or credit repair company insists that you pay them up front for their services. It is against the law for all debt relief & credit repair services to make you pay for services they have not yet delivered. You should be weary of any company that does not explain to you what rights you have in regards to your credit and debt,or do not inform you of the options you can do on your own.

If the company discourages you from connecting with any of the three main credit reporting agencies, you should immediately become suspect. This is one of the first things a reputable company would suggest you do to get started on the road to credit repair. Reviewing your report and getting any incorrect information changed so that it is accurate is a major step in the process.

If the credit repair company encourages you to do something you feel is a little "shady" or deceptive, it is probably a good idea not to go along with it. Some companies will try to get you to set up a new credit identity by obtaining an Employer Identification number and using it instead of your Social Security number. If you do this under false pretext, you will be breaking the law and could end up in serious trouble. Making false applications and giving information that is not true can result in numerous charges against you.

Anytime a company issues a 100% guarantee that they can remove all the harmful data in your credit report, you should stop any further dealings with that company and find another or handle things yourself. Information in your credit report that is factual and current cannot be removed by any credit repair company or individual. If it is verified as being true, it stays on the report. The same rings for debt consolidation companies who guarantee that your creditors will participate and you will save a specific amount of money. No one has the authority to force any of the credit card companies to forgive a certain percentage of your debt, and although it is possible, it is no guarantee.

One aspect that makes it easier for you to keep up to date on your credit is that you are eligible to receive a free annual report from each of the three main credit bureaus, Equifax, Experian, and Trans Union.

All you need to do is put in the request. You can do this by calling 1-817-322-8228, visiting annualcreditreport.com, or sending a written request to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Georgia, 30348-5281. The form needed to make the written request can be printed from ftc.gov/credit. Reports from the three bureaus can be requested all at one time, or you can request them at different times throughout the year. If you are denied any application as a result of your credit report, you are also allowed to receive a free copy of that report. You will have to make the request within 60 days of being notified of the application denial. There are other instances that will qualify you for a free report, also, like when identity theft or fraud are involved.

If there is inaccurate or outdated information on your credit report, you can dispute this information at no cost to you. Write a letter to the credit bureau and let them know which information is in error. Send copies of anything that will show that the data is incorrect. Give all your information such as name, address, and so on. You can also include a copy of your report with the questionable information highlighted. It would be best to send your letter by registered mail and request a return receipt. This way you can be sure the bureau received it and have documentation to prove it. Make and keep copies of the letter and everything you sent with it.

Within 30 days, the credit reporting bureau must check into the information you have disputed. They will also have to send all the data you included on to the organization that supplied the information to them initially. In turn, this organization is required to investigate your claims and send the results of its investigation back to the credit bureau. If the disputed data is indeed incorrect, the organization that furnished the information originally must send notification of this to the national reporting credit bureaus so that your file with them can be corrected. When all this has been done, the reporting agency you sent your letter to will notify you in writing as to the results of the investigations. If these results changed your credit report in any way, the reporting agency will send you a copy of your corrected report at no charge to you. You can also request that a copy of the new report be sent to anyone who has gotten your report within the last six months, or, if it regarded employment, the last two years.

Repairing your credit can be a long and complicated process. You can do it yourself, though, and if you decide to forego using a credit repair company, you can be sure that you can accomplish the same as the company could as long as you have patience and are willing to make the effort. In order to save money on insurance, loans, credit cards, and more, it is important to do all you can to repair your credit history. In addition, a good credit report will help if you plan to start a business or search the job market. Just don't think you have to hire someone else to repair your credit or consolidate your debt for you when you are capable of doing it for yourself.