Unfortunately there are many companies that simply want to scam you out of your money. They make false claims about credit repair. People believe these claims, pay the company money, and find themselves with the same bad credit. In many cases, the credit repair company may encourage you to commit a crime by asking you to create a federal ID number. Basically they are asking you to create a new identity, which is illegal.
Credit repair companies target people who desperately want a car, a house, insurance, or even a job, but have bad credit. These people see the ad that claims, "We can erase your bad credit-100% guaranteed!" They claim that they can erase information from your credit report.
If you feel that you need to seek repair for your bad credit it is best to keep in mind the following:
*Credit repair services cannot make false claims about their services.
*You cannot be charged until services are complete
*They cannot perform any services until they have your signature and have completed a 3-day waiting period.
*Inaccurate information can be removed at no cost by reporting the error to the credit-reporting agency.
*It is illegal to create a new identity to obtain credit.
*Sometimes self-help may be best!
To improve your credit rating, pay your bills on time, report discrepancies to the credit bureau, reduce the amount you owe, and close unused lines of credit. Don't forget the importance of obtaining your credit report at least once a year! You can do so by contacting the three national credit bureaus: (In some states, including Georgia, you can request two free reports a year from each bureau.)
Equifax 1-800-685-1111
Experian 1-888-397-3742
Transunion 1-800-916-8800
Source: Georgia Consumer Fraud Task Force
Debbie Wilburn is County Agent/Family and Consumer Science Agent with the Hall (770)535-8290 and the Forsyth (770)887-2418 County Extension Service
http://accesswdun.com/article/2003/3/181484