Credit Cards And Loans - Credit Repair
There is a scam for almost every topic you can think of and if you can’t think of one you can bet there are plenty who can. With all that is going on in the financial world at present there are now a number of credit repair scams types which we will cover in this article.
The 2 main forms are those committed by a perpetrator and those inflicted on a credit hungry victim for those committed in the first option, this is where someone wittingly sets about creating a new identity for themselves by adopting a new name or by setting up another social security number or and establishing a new federal employment identification number (EIN or FEIN) falsifying address details is also popular. All of the above can result in fraud charges, as trying to obtain credit by deception is illegal.
The second of the credit repair scams types are companies or individuals that offer to improve an individuals credit record using some of the above methods or creating fictitious credit files for loans that have been repaid or regularly serviced, some will claim that for a fee they will remove negative information from the likes of experian or equifaxs’ database. This is not true as only inaccurate information can be removed.
The only organisations that can remove bad credit history data are the credit bureau or the creditor. By viewing their credit file those seeking to see an improvement can request that inaccurate information be removed themselves without having to engage the services of anyone.
Falsifying id will not achieve much as the individual will have no previous credit history, which is no better than having a bad one and faced with criminal charges makes it a rather fruitless act. credit repair scams types will normally approach an individual as spam email and should just be deleted.
if you want to improve credit some legitimate companies will now offer prepaid credit cards where you pay the money in advance (not really credit) but over time if the card is regularly used and topped up a small amount of credit will be offered (charged at high rates of interest) and again following regular use and payment the applicant will see a regular improvement in their credit file and the amount they can borrow.
The overall moral has to be that if you can borrow money, you have to pay it back! and if they make that their a mantra the borrower will have no problems raising access to credit.