When a person suffers from a bad credit history, you become a victim to heartless scammers who will offer credit repair services. They might say that they will clean up your credit files for a fee, and eliminate your poor credit history; but they are breaking the law.

It doesn't seem fair. Scams like these hurt people who need the help most. Scammers only want your money and they don't care who they hurt in the process.

That's why we compile free information like this on our website FindHow2.com, to help others pull themselves up out of the cycle of painful debt and poor credit. It can be done! It takes time, effort, and followup. But by falling victim to illegal credit repair scams, you might make your financial situation even worse!

Credit repair scams can usually be uncovered if you hear anything resembling the following false promises:
(1) you are advised to invent a “new” credit identity so as to obtain a new credit report for future borrowing purposes, by getting a business employer identification number (EIN) that will hide your own bad credit attached to your Social Security number.
(2) you are not informed as to your legal rights or the things that you can do by yourself at no cost at all.
(3) those companies that ask to be paid for credit repair services before any service is done at all.
(4) you are advised not to contact a credit reporting company directly.

If you think having bad credit is a hassle, you ain't seen nothing yet! You're tempting the Furies by following any such advice.

Actually, you might even be prosecuted for mail or wire fraud if you use the mail or the telephone following such a scam, to apply for credit and provide false information. That's because it's a federal crime to lie on a loan or credit application. It's a lie to misrepresent your Social Security number. And it's a crime to get an Employer Identification Number from the Internal Revenue Service under false pretenses (i.e., to hide your bad credit from lenders, instead of starting a real small business or starting a corporation that would need such an ID number for its tax returns).

And as to asking for payment for credit repair services BEFORE the services are completed, now that's a clearly worded violation of the Credit Repair Organizations Act, and you need to stay clear of lawbreakers, in my opinion.

Don't let anyone mislead you: accurate negative information will stay on your credit report, so if harmful information on your report is keeping you from a loan, you'll need to work hard to overcome this. You can't simply try to eliminate the truth from your report.

As we've written all through our web sites and blogs, there is plenty of legal options available. You have the right to ask for an investigation of the information appearing in your file that you dispute as inaccurate or incomplete. You will not be charged for this if you follow simple, easy to complete steps. There is no need for you to pay a dime to a credit repair clinic to fix your credit report. You can do everything they can do, and since you'll have a vested interest in getting the work done right as soon as possible, I'd bet you'll do a better job than a complete stranger.

Steve Johnson offers free advice to help people fix their own credit report at http://www.findhow2.com/repair-credit.html. He can be contacted via email at fixyourcreditreport@gmail.com.

Article Source: Steve Johnson