I have heard of companies that you pay a $250.00 fee to and they make your credit clean, and promise you a credit score of 620 or better within 4-6 months? Is this a scam or do companies like this really exist??
2007-07-04 07:25:10 · 7 answers · asked by Melissa M 2 in Business & Finance ➔ Credit
It's a scam.
They will either charge you to do nothing or to do something illegal or they will only do what you yourself are capable of doing and charge you for the privilege.
First thing to do is get a copy of your credit record.
Go through it carefully and make sure it is accurate. Query anything you don't recognise (possible id theft) and if anything that's recorded is wrong, write to the credit record agency asking for a note to be attached to the file.
Ask for a note to be attached also to anything that needs explaining. The credit records people will review the request and do what they think is right.
Make sure that your address details are right and that your social security number, electoral info and anything else is correct.
Next make sure that all your creditors are being paid. If you cannot afford to pay them all, don't just ignore them. Write to them and ask to be considered for a payment plan. Many will be glad to have some money rather than none. They will probably accept a much lower payment over a longer time, and many freeze interest.
Once that is all running smoothly, take out a credit card. It doesn't matter if it's a credit repair card or has a punitive interest rate because you won't be paying interest. This is where self control comes in. Spend a tiny amount on the card each month, say buy one tank of gas. Then pay it off IN FULL every month. This gives you a credit agreement that is running perfectly and proves that you can handle debts well.
Don't think that your score is better if you have no debts. You are actually best off having around two credit agreements which are paid off regularly.
It will take time and effort but it is easy enough to do. It will just take a while to see the results.
I don't know what the law in the US, but in UK they are not allowed to keep negative financial info longer than 6 years. Many companies do not even look that far back. You should be in a much better position within a year and if you keep it up you will have a perfect score by the end of the six years.
2007-07-04 07:49:17 · answer #1 · answered by Fifi L'amour 6 · 0⤊ 0⤋
If that were true we'd all have scores of 800!
That's a scam for sure. At most what they might do is write letters for you and dispute everything on your credit report hoping something would fall off.
You can clean your credit and there is no need to use a company like this.
The best way to improve your credit is
a) Pay things on time from NOW ON
b) Don't apply for more credit
c) If you have a mortgage, never let that one be late (>30 days)
d) If there are errors, dispute them in writing to the bureaus and they will verify.
2007-07-04 07:32:57 · answer #2 · answered by businesstherapist 2 · 3⤊ 0⤋
They are sometimes a scam but don't send any of them even $125 when you can do it yourself for much less. Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters—this is the key…..people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact.
2007-07-05 03:34:36 · answer #3 · answered by stephen l 2 · 0⤊ 0⤋
They are scams. If the items on your credit report are wrong, they can help you get them cleared - but you could do that yourself without paying a fee. If the items are true, then they just take your money, and they can't "fix" it for you. You have to do that, by paying your bills.
2007-07-04 07:52:40 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
A lot of them are scams. Write to all three credit companies yourself and get your free copy - you rate one every year. Then write a letter to all derogatory remarks and ask what it would take to remove the bad mark. It's more work but you can do it yourself and get higher scores.
2007-07-04 07:33:45 · answer #5 · answered by Gunny Bill 3 · 2⤊ 0⤋
yes,
Its called pay all your debt off Honestly and build new credit
Pay it on time
never late
do not extend yourself and start a savings account
Any one who says they can wipe out your debt are frauds and should be reported to your local Better Business Buero
HUGE SCAM
2007-07-04 07:34:07 · answer #6 · answered by Utopia 4 · 0⤊ 1⤋
SCAM
2007-07-04 07:29:46 · answer #7 · answered by Mike Frisbee 6 · 1⤊ 0⤋