Bill Smith

Credit repair scam - How to avoid being a statistic?
A good credit history is critically important for the consumer. A bad
credit will prevent you from getting a business loan, owning a home, or
even a job. Promises to "fix" your credit are always made by credit
consolidation companies, but they are seldom true. Here are some of the
important tips to avoid scams:

First things first. Negative information cannot be erased if the
information is correct. Only inaccurate information can be corrected in
your credit file. Credit file information remains on your record for seven
good years from the time it is reported to the bureau. For bankruptcy, the
information remains on your record for ten years. All the consolidated
information about your credit bills you fell behind on, but are now paid,
will remain on your report for the time period mentioned above.

Do not pay the credit repair company unless their promises are kept.
Remember, the law is on your side. Federal law requires credit repair
companies to give you a complete detailed explanation of your legal
rights, a completely documented written contract, and above all, 3 days to
cancel. This applies to all credit repair services including for-profit
services, non-profit services, creditors and credit unions.

Be wary about emails you receive. When you hover your mouse over the link
in the email, you will know for sure if it is a trusted website or a
fraudelent one. If fraudelent, report it to your bank promptly.

You don't need a counselor to correct your mistakes in the credit report.
Take charge of it yourself. If you were recently denied credit, you can
request a free credit report. Otherwise there is a small charge for it.
Some states will allow you a free copy of your credit report once a year.
It doesn't cost you anything to dispute or question items in your credit
report. Get online or follow instructions from your credit bureau. The
three major credit bureaus are Equifax (800- 685-1111), Experian
(800-682-7654) and Transunion (800-916-8800). In most cases you will need
to contact all the three credit bureaus as the information they have about
you may vary.

Remember that you can't create a second credit file. Some of the
fraudelent companies will offer to provide the consumers with a different
social security number (tax identification number if ssn does not exist)
in order to create a new credit file for the consumer. Such a practice is
called as "file segregation". File segregation is illegal and does not
work.

Whereever possible, add explanation to your credit report to prove your
point. If you have legitimate reasons for not paying certain bills on time
(switching jobs, illness), or if you refused to pay because of a dispute,
send the bureau a statement to be tagged with your credit report. Each
lender who pulls your report will be aware why you fell behind on those
bills.

Counseling might be a good option. Find a good non profit consumer credit
counseling service in your neighbourhood. Get online or open your yellow
pages to find one. Seek the guidance of friends and family members. Select
a counselor, meet them in person to make sure they are right for you. Ask
them on tips and advice on how to build a good credit history. If you are
still lagging behind on your payments, credit consolidation firms will be
able to set up a payment plan with your creditors. If money is an issue,
select a non profit credit counseling service. They will offer their
service for free or for a very low cost.

About the Author
"@Copyrights 2005" - Bill A Smith is a credit counselor for Ameri credit
counseling services. Bill has over 10 years of experience in providing
credit consolidation, credit counseling and credit management services to
clients. Visit us at http://www.americreditservices.com for free credit
consolidation articles, free credit counseling tips and non profit credit
management services.