U.S. citizens have more debt than in the past. A recent study shows that people in the United States, as a whole, are saving cash at the lowest rate than at any time since the 1930’s. In reality, the savings rate is literally negative, and that means that individuals are spending more money than they are earning. The problem with doing so is that the bills eventually catch up to you. You can either pay your bills or watch helplessly as the negative entries begin to pile up on your credit history.
Realizing that a lot of people in the United States have found themselves buried under a pile of debt, and worse, having a credit rating that accurately reflects that problem, quite a few resourceful and dishonest companies have started companies that promise to “repair bad credit.” Their commercials are on television, telephone poles and even in our inboxes in the form of spam. The promises are generally the same; the companies offer, for a fee, to eliminate judgments, bankruptcies, tax liens, late payments and any other “black marks” on a consumer’s credit score, all for a price.
There is just one problem – they cannot do it. There just isn’t any way to lawfully remove accurate information from a credit report. These corporations are promising the sun and the moon, collecting their service fees and doing absolutely nothing. As a result of thousands of complaints, the Federal Trade Commission has been cracking down on these credit repair companies, but the twenty or so firms that the agency has shut down so far only scratches the surface. Hundreds of these companies remain in business, and consumers should be aware of these companies that promise more than they can deliver.
While there are genuine credit counseling agencies that can help you with debt problems, consumers should avoid corporations that promise to “fix” a bad credit profile by recommending any of here:
That you challenge every single item on your credit history. This just clogs up the system, but sooner or later, the information will be verified.
That you can get a new “credit identity” by obtaining an Employer Identification Number. This does not work; the credit bureaus will ultimately determine that the two identities are identical.
Urging you not to pay your debts because of an alleged Federal law that makes offering credit against the law..
The only way to “fix” bad credit is to pay your bills, pay them promptly, and wait. It takes years to get into credit trouble and it takes years to get out of credit difficulty. There is no rapid fix, no matter who promises you otherwise. Instead of paying someone to “repair” your credit, save the money and use it to pay down your debt.
Leave a Reply