Broken By Your Credit Card? Credit Repair Service Can Help
Broken By Your Credit Card? Credit Repair Service Can Help
Credit cards are great, but if not used with common sense and self-control, can easily break your bank and peace of mind. If you've been broken by your credit card, credit repair services are easily available in every state and online to help you. But which credit repair services are legitimate? The Federal Trade Commission (FTC) has come up with some safety tips for those of you to choose a credit repair or debt reduction service.
Scam Warning Signs
There are about as many debt reduction services as there are kinds of credit card. Credit repair service should always work within the law and not make any outrageous promises. They should also concentrate on helping you learn how to manage your money for the rest of your life instead of offering the financial equivalent of a band-aid. Any sales person or advertisements that have these statements are considered scams by the FTC:
"Repair your credit - 100% guaranteed" (this is impossible)
"Get a new credit identity" (this is illegal)
"Get all bankruptcies, low credit scores and liens from your credit file eliminated" (ditto)
"No credit problem to bad for us to fix" (this means they are stupid)
To help get rid of your debt by credit card, credit repair services are required by federal law to let you know of what actions you can undertake for free. For example, if they insist that you have to pay to get your own credit report, get up and leave. You are allowed one, two or three free credit reports a year. Just contact the three companies who offer this free service - Equifax, TransUnion and Experian - either over the phone or online. However, you do have to pay a fee for your credit score, which is different from your credit report.
The Credit Repair Organizations Act
Just like credit cards, credit repair services are big business. The FTC regulates them firmly. And, for your protection, there is such a federal law called The Credit Repair Organizations Act, which you should be aware of. All debt reduction services are required to let you know your rights BEFORE you pay any fees. Also, a debt reduction company is not to charge you until they have completed their services to you. And, if you catch them making false claims about their services, you should contact the FTC as soon as you can. They are doing something illegal. By keeping these tips in mind, you can fix the damage done to you by a credit card. Credit repair services can help.