Using credit repair services can sometimes cause more harm than good. Be wary of empty promises and quick fixes to your credit report. Taking the wrong advice can even get you into legal hot water.
Some credit repair services say they can give you quick debt relief and easily repair your credit report. However, many of them have proven to be less than honest. credit repair For this reason, Congress passed the Credit Repair Organization Act in an effort to alleviate some of the dishonest behavior pursued by flagrant offenders.
This act makes it illegal for any such organization to advise a client to either alter their identification, or attempt to hide accurate credit report information.
What to Watch Out For
There are several signs to look for when comparing credit repair services. Here are some of the situations to avoid:
* Repair companies that require payment prior to services rendered
* and who do not provide you with a statement of rights.
* You are summarily advised to dispute all information in your credit report without justification.
* You are advised to create a new "credit identity" by using an Employer ID (EIN) instead of your social security number.
* The repair company conducts all creditor and credit bureau communications, discouraging direct access to them.
Potential Impact
Following these strategies can result in federal prosecution for providing inaccurate information, obtaining an EIN under false pretenses, and/or mail or wire fraud. credit repair You are responsible for all actions taken by a credit repair service on your behalf. These can be serious offenses and shouldn't be taken lightly.
The Alternatives
You have the right to cancel any contract with a credit repair organization within three days after signing it. In addition, the Credit Repair Organization Act requires repair companies to complete all work before demanding payment. If you suspect unethical practices by a company representative, you should refuse their services and report their actions to your local authorities. credit repair If you participate in any illegal activity when trying to clean up your credit report, you can be criminally prosecuted, even if it wasn't your idea.
There is no magic to credit repair and nothing involved in it that the average consumer can't accomplish themselves. You are entitled to one free credit report annually from each nationwide credit bureau, plus you can request one every time you are denied credit or "adverse action" has been taken against you. That is the starting point for conducting your own free credit repair.
Don't be pressured into doing anything you think is unethical or dishonest. As the saying goes, if it sounds too good to be true, it probably is.
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Thursday, July 1, 2010
Your Credit Report - Who Can Access Your Info Might Surprise You
Who has access to the personal financial information contained in your credit report might surprise you. It's important to understand the implications, especially if you are trying to rebuild your credit, obtain more credit, or conduct credit repair.
The List is Long
These organizations can legitimately request your credit report:
* Student Loan and Grant Lenders - You usually won't be denied a loan for bad credit. But you can't get another federal loan if you already have one in default.
* Utility Companies - Bad credit won't prevent you from getting service unless you are in arrears or owe on an old account. Payment plans or assistance is sometimes available. credit repair
* Mortgage Lenders - If you try to get a loan greater than $150k, mortgage lenders can access more extensive, historical information than other creditors and they review it very carefully these days.
* Potential Creditors - If you initiate a transaction or accept a credit offer a credit report can be requested. Too many requests can have a negative impact on your credit report so don't authorize a request if you are just contemplating a purchase.
* Judgment Creditors - If someone receives a judgment against you, they can look at your report to determine if they should start collection efforts against you, or if they have to hire someone to locate you or your assets.
* Collection Agencies - If you have an account sent into collection, the collection agency can request a copy of your credit report to learn more about your assets, to find you, or initiate collection efforts. credit repair
* Insurance Companies - Insurance companies can access to your report if you apply for a new policy, but you must give consent if it contains medical information. If you are trying to obtain a life insurance policy greater than $150k, the insurance company can access older information, like what's available to the mortgage lender.
* Employers - You must give permission before an employer can access your credit report. Employers often require this when conducting a background check on a potential employee or to assess a current employee for promotion.
* Government Agencies - Your credit report can be requested by government agencies to determine eligibility for public assistance. They look for hidden assets or income - not unpaid bills. Your credit report can also be used when considering child support payments or eligibility for various state licenses. Government agencies can also access your information when investigating terrorist activities.
The Good News
There are still many people and organizations that are not allowed access to your credit report. For instance, it cannot be used in immigration, child custody, divorce, or other legal proceedings. The district attorney cannot access your report for either criminal or civil case investigations. credit repair To monitor unauthorized use, request a copy of your credit report at least once a year and review the list of inquiries. Look for unfamiliar names or businesses on the list. Under the Fair Credit Reporting Act, you can sue anyone who has requested your credit report fraudulently.
If you want to repair or maintain your credit, you need to consider who has access to this most personal information. Too many inquiries into your credit score can negatively affect your efforts. Knowing this and understanding how your information is used to evaluate your credit puts you in the drivers seat when it comes to building your credit rating and achieving your financial dreams.
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The List is Long
These organizations can legitimately request your credit report:
* Student Loan and Grant Lenders - You usually won't be denied a loan for bad credit. But you can't get another federal loan if you already have one in default.
* Utility Companies - Bad credit won't prevent you from getting service unless you are in arrears or owe on an old account. Payment plans or assistance is sometimes available. credit repair
* Mortgage Lenders - If you try to get a loan greater than $150k, mortgage lenders can access more extensive, historical information than other creditors and they review it very carefully these days.
* Potential Creditors - If you initiate a transaction or accept a credit offer a credit report can be requested. Too many requests can have a negative impact on your credit report so don't authorize a request if you are just contemplating a purchase.
* Judgment Creditors - If someone receives a judgment against you, they can look at your report to determine if they should start collection efforts against you, or if they have to hire someone to locate you or your assets.
* Collection Agencies - If you have an account sent into collection, the collection agency can request a copy of your credit report to learn more about your assets, to find you, or initiate collection efforts. credit repair
* Insurance Companies - Insurance companies can access to your report if you apply for a new policy, but you must give consent if it contains medical information. If you are trying to obtain a life insurance policy greater than $150k, the insurance company can access older information, like what's available to the mortgage lender.
* Employers - You must give permission before an employer can access your credit report. Employers often require this when conducting a background check on a potential employee or to assess a current employee for promotion.
* Government Agencies - Your credit report can be requested by government agencies to determine eligibility for public assistance. They look for hidden assets or income - not unpaid bills. Your credit report can also be used when considering child support payments or eligibility for various state licenses. Government agencies can also access your information when investigating terrorist activities.
The Good News
There are still many people and organizations that are not allowed access to your credit report. For instance, it cannot be used in immigration, child custody, divorce, or other legal proceedings. The district attorney cannot access your report for either criminal or civil case investigations. credit repair To monitor unauthorized use, request a copy of your credit report at least once a year and review the list of inquiries. Look for unfamiliar names or businesses on the list. Under the Fair Credit Reporting Act, you can sue anyone who has requested your credit report fraudulently.
If you want to repair or maintain your credit, you need to consider who has access to this most personal information. Too many inquiries into your credit score can negatively affect your efforts. Knowing this and understanding how your information is used to evaluate your credit puts you in the drivers seat when it comes to building your credit rating and achieving your financial dreams.
Web Designer PSD to Wordpress
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