There are many credit repair scams and myths out in the world right now. Besides the common scam of using a person who isn’t even licensed or certified to help you (always search Illinois licenses before you choose), there are some other scary ones out there. I’m sure you have heard of many, and some may even prevented you from wanting to repair your credit. Do not fear though, today we will go over these common credit repair scams and myths so that you can overcome your bad credit and work on improving it in the future.
1. Credit repair will allow you to erase bad debt.
This is a myth. Credit repair does not allow you to skip out on or ?erase? your bad debt.
Credit repair helps you to fix mistakes, improve your report so that a lender can see you at your possible best, and helps you to establish new and good credit. It is not to ?erase bad debt? or even erase true and accurate information.
If something is absolutely true and accurate it is supposed to stay on your report for the time period of the statute of limitations, but even so you can repair and improve your credit while you are waiting.
2. Bad credit is forever.
This is a myth. Only if you continue to make credit mistakes will you continue to be plagued by bad credit. And the truth is that time heals all credit mistakes. Even if you do nothing your credit will be good again in 7 to 10 years, but there is no permanent credit purgatory for those who have had troubles or made mistakes.
3. You can get a new Employer Identification Number and start on your credit all over again.
This is a myth. That is against the law. If someone tells you that they are running a scam and if you do it you will be breaking the law. Bad credit is probably not as bad as prison. Don?t even try it.
You can repair your credit and a legitimate company can help you.
Verify references, check the better business bureaus and one more clue for you to avoid credit repair scams, legally a credit repair company cannot force you to pay prior to rendering any services. They don?t have to get results first but they do have to complete some services before they can charge you.
Results are not guaranteed and based upon the individual circumstances it could happen quickly or more slowly, you never really know.
What credit repair scams and myths have you heard before?
Image via Flickr by Robert Scoble