Do you have bad credit score and have you been turned down by multiple lenders during a loan application? Thousands of Americans have poor credit score and are looking for ways to refurbish their score and emerge credit-worthy. However, as there are an increasingly large number of people who are rushing to credit repair agencies, the credit repair scams are also on a rise. Just as identity theft can take a toll on your personal finances and push you deeper into the vicious debt cycle, credit repair scams can also prove to be harmful for your current financial state. When you’re subject to identity theft and when a person impersonates you and uses your credit card, it is most obvious that he will purchase a lot of things with the card. When you’ll get your credit card statement, you may come to the realization that you’re unable to repay the debts; and this will hit your credit score. What will you do then? How should you go about repairing your credit?
What is identity theft credit repair?
Though the legal process of identity theft credit repair may take a lot of time and can be strenuous, recovering the lost identity and regaining normalcy can be done in order to boost your credit score in the long run. When a person goes for credit repair, his ultimate objective is to remove all the erroneous information that is dropping down your score. You can negotiate with the credit bureaus thereby proving that you were a victim of identity theft. You may also state that all the charges made with your card are not yours. When you’re successful, this will help boost your credit score.
The first step that a person should take is to contact all the creditors and inform them of your situation. You need to tell them that all the purchases shouldn’t be authorized and the credit should be immediately suspended. Call any of the financial institution and negotiate with them so as to improve your credit score and emerge creditworthy once again. If you’ve been a victim of identity theft, you can contest any item on the credit report in order to remove the inaccurate information that is unverified. The credit bureau usually has 30 days to verify all the details of your credit report and up on request, all the errors are deleted from your report.
Signs of a credit repair scam – Awareness can make you alert
As mentioned earlier, the credit repair scams are on the rise and this is the reason why most of them are meeting with unsuccessful results. Here are some signs of credit repair scams that you can stay aware of.
- When you aren’t given a copy of the contract before you’re asked to sign it.
- When the contract doesn’t contain information of the amount that you’re being charges and the details of the actions that are being taken on your behalf.
- When you aren’t given a copy of the Consumer Credit File Rights under the Federal and state law.
When you’re asked for the payment and the charges before the actions are taken.
What to do when you’re scammed?
It may happen that you’re subject to credit repair scams but you shouldn’t let the credit repair scams to get away with this. If the information is wrong, you should exercise your right to file a dispute so that the harmful negative information does not hurt your credit score. You can report to the State Attorney General and also visit the National Association of Attorney General’s website to file a complaint. The FTC can also be reported against such scams.
Since you know that identity theft can cost you dearly in the long run, getting an upper hand over the scams can help you breathe easy. Go for credit repair and boost your score so as to grab loans at the best possible rate.
Neil R. Williams is a financial writer, a market analyst and an member of DebtCC community. He consults and writes on global finance. Moreover, he discusses matters with respect to debt consolidation, credit repair, tax and so in the community forum.