Bad credit repair counseling is an option that you may want to give serious consideration if you're tired of dealing with a load of debt. Here are some things to look for.
Before you know it, your debts can become so high that you have no idea how you will be able to repay them. Even if you have thousands in debt, there are account bad credit repair options that are available to help you.
Many companies offer bad credit counseling repair. However, the most important thing is to be able to know the good companies from the bad ones.
What is a Scam?
When looking into bad credit repair counseling, you definitely want to watch out for scams. You'll quickly find that there are many ads on television and the radio for agencies that offer account bad credit repair. The problem is that many of these business are actually scams and are fraudulent companies.
Sometimes they claim that they can repair your debt without charging you money up front. They may claim to create a record that is clean or to remove any legal credit judgments against you. According to the Federal Trade Commission, bad credit counseling repair cannot offer a quick fix to improve your credit.
There are legitimate ways your credit can be repaired, but it will take some time and effort on your part. Usually it is only the non-profit credit repair counseling companies that are truly legitimate.
You'll find that illegitimate bad credit counseling repair companies make a lot of promises, but they can't deliver on the promises that they make. Sometimes they actions that they want you to take are actually illegal.
Some will ask you to come up with disputes for all the items on your credit report, they may ask you to lie on credit applications, or to register for your own employer identification number.
The problem is that these actions are all crimes, and if you follow this account bad credit repair advice, you could end up with huge fines or spending some time in jail.
Spotting a Scam
It's a good idea to know what you should be looking for in a bad credit repair counseling scam. Companies that are trying to scam you usually will ask you to pay up front. Federal law states that these bad credit counseling repair agencies cannot ask you for any money before they render you the services.
If you are asked to pay before they take action, then the company is probably a scam. There are companies that want to see your credit report so they can dispute certain items, but this is something you can easily do on your own.
Companies that are scams may not let you know what rights that you have and they may tell you not to talk to creditors. This can be a problem, since often you can resolve problems by talking to your creditors. Since they don't let you know what you could really do on your own for free, you could be losing your money, adding to your debt by going with a company that is a scam.
The good news is that there are good bad credit repair counseling companies out there today, but they are the non-profit ones. Make sure you carefully look at any company you are considering to make sure you are not getting scammed out of your hard earned money.
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Disclosure: I am an independent Credit Repair Cloud™ Affiliate, not an employee. I receive referral payments from Credit Repair Cloud. The opinions expressed here are my own and are not official statements of Credit Repair Cloud.