How to avoid credit repair rip-offs
How to Avoid Credit Repair Rip-offs and Dubious Offers of Credit In this day and age, everyone needs credit, whether to buy a car or a house, obtain a loan or a credit card, even to get a job and life can be pretty tough if your credit stinks.
There are many good and legitimate agencies who for a reasonable startup fee and a monthly charge ranging from $40 to $80 will help you repair your credit. However an economy that requires a good credit score to get the best interest rates, better housing and even a decent job is creating an industry of scammers who prey on consumers eager for the quick fix to their credit problems, but in the end they will only take your money and offer nothing in return.
If you worry that you might fall victim to a credit repair scam, then the following information might give you a better idea what to look out for and save you money that you can't afford to lose.
There are a good many reputable credit repair agencies and credit counsellors available in the yellow pages and on the internet, however there is nothing these professionals can do for you that you cannot do yourself and for a lot less money.
Guaranteed Loans or Credit Cards: Although most lenders are owned and operated by legitimate professionals, there is an industry of fraudulent loan brokers and credit companies ready to take advantage of unsuspecting consumers by misrepresenting the availability of credit and credit terms in order to cheat individuals out of money.
Be wary of companies charging an advance fee that supposedly guarantee a loan or credit card. These fees can range from $100.00 to several hundred dollars. In most cases, the customer never receives the loan or credit and the con artist disappears with the money.
Fraudulent lenders prey on consumers eager for credit by placing enticing advertisements in classified sections of local and national media, the internet, radio and cable television, which gives them the appearance of credibility. However, advertising in recognized media sources is no guarantee of a company's legitimacy.
Legitimate lenders never guarantee that you will receive a loan or credit card before you apply, especially if you have bad credit, no credit or are in bankruptcy and they never ask you to pay money up front.
A consumer who is not credit worthy and finding it difficult or impossible to obtain a credit card can more easily obtain a debit card from their bank, allowing him/her to make plastic transactions. Debit cards may also be used by workers to send money home to their families holding an affiliated debit card.
Secured credit card (secured by an up-front deposit) are popular among college students who have not yet established a credit history. Word of warning! Once you have established a credit history you will most likely be inundated with credit card offers, mostly from legitimate companies, just be careful how you use them and don't run up charges you can not easily pay-off at the end of the month.
You can legally repair your bad credit and raise your credit score fast, stop collection agency harassment, make it easier to obtain a loan or credit card and prevent identity theft.