Avoid a Credit Repair Scam

Credit repair organizations can provide invaluable assistance in your request to repair damaged credit. However, not all such organizations are reputable. Some organizations make false claims, and promise what they cannot legally or feasibly deliver. Tampering with accurate credit reports is not the way to go about boosting your credit score, and your credit history cannot be erased. There certainly are ways to rehabilitate your credit, but you should be certain the process is fair and legal, and the results lasting. By filling out Miracle Credit Repair's form, you are connecting yourself with several respected companies whose services match your credit repair needs.

Red Flags

Beware companies who claim they can have accurate information on your credit report removed or altered. This is falsely proclaimed miracle credit repair. It is both impossible and illegal, and because these companies cannot fulfill their promises, you will have paid them for nothing. This leads to a second warning sign:

• Know that companies also cannot charge you for their services until they have delivered on their promises. If a credit repair organization requests or demands payment up front, look for help elsewhere.
• Federal law mandates that you must sign a contract with for-profit credit repair companies, and the Better Business Bureau stipulates that you be granted a three-day period during which you may cancel your contract for any reason without paying a fee. This contract should include clear statements regarding the company's fee and payment requirements, the company's services, and any company guarantees-including the amount of time it will take them to complete the specified services. The contract will also spell out your own obligations.
• The credit repair company is required by federal law to provide you with an explanation of your legal rights before you sign anything. You should be given a copy of the "Consumer Credit File Rights Under State and Federal Law," and you should take the time to read it (it is only one page). Don't allow a company to pressure you into signing something without expressly alerting to your rights as required by law.
• Even a miracle credit repair falls under the letter of the law. Creating a second credit file is illegal, and any company who offers to create a second credit identity for you is not credible. Known as "file segregation," this practice involves the provision of a new social security number, employer identification number, or tax identification. Furthermore, it likely will not work. Your new credit history is attached to the same name and address (yours) to which your old credit history is attached. You can't ditch the past that easily. Concentrate instead on repairing your standing credit. There is work involved, but it is worth it in the long run.
• Do not trust companies that advise you against directly contacting a credit bureau or credit reporting company. It is your credit, and you should have direct access to your credit score, file, and history.
• Do not be dazzled by companies that tout speedy repair services. They have more experience addressing credit problems than you do, but the process is not often quick, and accuracy and timeliness are more important attributes than speed. You can still obtain certain credit cards and loans, etc., despite a poor credit score.

Since you now know about avoiding credit repair scams, you can now read the tips we have given for repaying debt and rebuilding your credit.