Monday, January 23, 2012

Don't Get Scammed by BAD Credit Repair Companies!

Many credit resolution companies say they can correct every kind of bad credit hisstory. All a person must do is hire said firm and ta-da! All of their credit troubles can go away. Is there any accuracy to this?

Several large firms have been in the news lately, and thy have been accused of being downright scams. Even those who thought their credit could get no worse ARE coming out worse after being involved with these companies. These fraudsters have made millions off of the backs of people who are hurting, and it a very bad place to begin with. It’s shameful.

How does this even happen? We know people are not necessarily this naive. But…they are fed up with the cyclical nature of bad credit. Something bad happens – like a divorce, or a stretch of unemployment. People get behind, and the creditors charge higher fees, putting the person further behind, which causes more fees, and it goes on and on and on this way. People get to the end of their proverbial ropes! Having a completely cleaned up and decent credit record becomes the prize. After all, it could stop homeownership, jobs, and even qualifying for insurance dead in its tracks! These scam companies know this and have become very good at playing on the emotions of desperate, angry, frightened and fed-up individuals and families.

Here is what you need to look out for to avoid these bad-seed companies:

The one-man shop, a.k.a., the guy working out of his apartment- This type of credit repair can be downright dangerous.
Large up front fees – Credit repair companies are explicitly forbidden to charge large down-payments.
Promises of exact score improvement – This is impossible to do. Each individual has certain variables and a unique outcome.
Lengthy programs (over 6 months) – After a certain amount of time has gone by, there will be no further action needed.

To recap:

Always look for a company that is licensed, bonded, and experienced. Credit repair companies have to follow strict guidelines to protect the public’s sensitive information and documents. Make sure the company passes this test!

Never pay a large down payment. This is actually against the law, and any credit repair company asking for one should be avoided, and possibly reported to authorities!

Many firms illegally advertise they can raise your score to 740, or some other exact number. They cannot do this, because of the individual nature of each person’s circumstances. This is false advertising.

It’s not all bad news, thank goodness. Just remember, there are some good companies out there, like us - Rising Point Solutions. We follow the strictest of guidelines to make sure that we repair your credit the correct way, and you come out with an improvement. We seek to not only do our job by disputing bad marks and removing errors, we also seek to educate. Having good credit does take some know-how, and if any of our clients need help learning how credit works, we are there for them! We’ve been repairing credit for thousands of people since 2005. We’ve seen many companies and individuals in the business come and go, but we are not going anywhere!


“Rising Point Blogger”

1 comment:

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