Don't Be a Victim!
Know How to Spot, Avoid,
Report a Credit Repair Scam
The airwaves are full of advertisements and infomercials aimed at consumers with credit issues ... Some of these companies are legitimate. But a fair number of them are fraudulent ... or just offering poor advice at a very costly price.
For those struggling with credit problems: A "quick and easy" fix to a very painful problem can sound pretty enticing.
Unfortunately, there's really no such thing as quick or easy when it comes to credit repair. It takes time. It takes consistent effort.
Should you need to improve or repair your credit: Prior to starting your journey to better credit, it's smart to take some time to educate yourself regarding credit repair and credit repair companies/organizations.
For disciplined individuals that are willing to take the time and make the effort: It's important to know that credit repair can be successfully performed by consumers on their own behalf.
Valuable information that will help achieve credit repair and credit improvement goals can be obtained at the myFICO ... and FTC (Federal Trade Commission) websites. Each site provides tips, that with time and consistent effort (mentioned above) will reap positive results.
For those that wish to repair their credit on their own, I also recommend the following:
1. Before you start, talk to a Mortgage Originator. This can be extremely helpful for any consumer, even for those that don't own a home/have a mortgage ... but also for those that hope to buy a home in the future.
An Originator can help chart a path back to good credit and supply beneficial credit guidance. Best of all? The guidance is often provided at no charge.
2. Know your Rights as a Consumer: The Credit Repair Organizations Act by Federal Law governs all credit repair companies/organizations. It lays out the credit repair services credit repair companies must fulfill.
Again, education is key. Educate yourself proactively about your rights so you are protected moving forward in your pursuit of improved credit.
For those that wish to secure the services of a credit repair company/organization: It's important to be capable of recognizing repair scams and schemes. You don't want to fall prey or become a victim.
The first thing you should do, when considering the use of a credit repair company/organization: Conduct a basic search of the company.
If you can contact them only by email, via their website, or by phone alone ... heads up! Move on to another company.
After conducting this important search, be aware of any of the following scam warning signs:
- A suggestion is made by the credit repair company for you to invent or create a "new" credit identity. Typically this scam calls for the consumer to apply for an Employer Identification Number (EIN).
- You are told NOT to contact any of the 3 major Credit Bureaus (Experian, TransUnion, Equifax)
- The repair company does not provide you a copy of the "Consumer Credit File Rights Under State and Federal Law". This disclosure alerts you to your rights to obtain your Credit Report and dispute errors within that Report.
- You're not provided a copy of the Contract to work with the credit repair organization prior to your being asked to sign it.
(a) All services being performed on your behalf and the detailed charges for each
(b) The complete Name and Address for the company - organization performing the credit repair
(c) The date(s) by which the services must be rendered and completed
(d) A Statement showing that you can cancel the Contract and services within 3 days of signing it
- The credit repair company/organization advises you to dispute all info on your Credit Report, even that info that is correct.
- The company says they can remove all negative information appearing on your Credit Report.
- The credit repair company/organization asks you to pay for services prior to them being provided. NO upfront fees are allowed.
- Low Monthly Fees are required.
- The company asks you to waive all/or any of the above-stated Rights.
- The company is not licensed or bonded with your Secretary of State.
Remember: Credit Repair and higher Credit Scores are attainable if you're willing to put time and consistent effort into achieving them. With Credit Scores so vitally important within our lives, it's an effort well worth making.
If you're in need of further info or assistance regarding credit or mortgage financing/services ... and in New Lenox - Will County - Illinois - Wisconsin, please contact me.
Get started today ...
* Hoping to Buy or Refinance a home in the Chicagoland area? Contact Me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:
Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI License 216987
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI.
Referrals are Greatly Appreciated and Welcomed!
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