We are bombarded with ads for credit repair companies, claiming to “Erase your bad credit history simple, fast and easy- Guaranteed!” Others promise to “Boost your credit score to 750 in just one week.” Consumer credit counselors are warning consumers to take caution when it comes to these type offers because it is likely a scam. In reality, there is no quick fix for credit problems; improving your credit score takes time and effort on your part. No one can remove accurate negative information from your credit report.
Here are some tips from the FTC on how to evaluate the trustworthiness of credit repair companies. Proceed with caution if…
• The company wants you to pay for credit repair services before they provide any services.
• The company does not explain to you your rights and ways you can fix your credit score for free.
• The company recommends that you do not contact any of the three major national credit reporting agencies.
• The company tells you it can get rid of negative credit information on your credit report, even if that information is accurate and current.
• The company suggests you invent a “new” credit identity and a new credit report by applying for an Employer Identification Number, instead of using your Social Security number.
• The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
Know that if you follow illegal advice and commit fraud, you can land up in hot water. It is a federal crime to lie on a loan or credit application, to misrepresent your social security number and obtain an Employer Identification Number from the IRS under false pretenses. Even if a credit repair agency advises you to do this, you yourself will be held accountable.
If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.