Avoid Credit Scams

There's an old saying that goes 'desperate times call for desperate measures'. When it comes to repairing your credit desperate times still require a clear head. It may be tempting to give in to some of the scams that are out there but always remember...if it sounds too good to be true, you'd better believe it is!

Some scams to look out for are:

• Loans that require an advance fee. The company guarantees that no matter what your credit history, you will be approved for a loan. The catch? You have to pay a fee before they process the loan. The fee ranges anywhere from $100 to several hundred dollars. Reputable lenders do not approve credit without knowing what they are getting themselves into. They also don't charge fees in advance. These companies often use 900 numbers (which results in charges to your phone bill), direct mail, radio or local tv ads. They may also use a courier service to deliver in order to avoid prosecution by the U.S. Postal Service.
• Companies that offer to repair your credit. No one can remove information from your credit history, unless it is incorrect. Quite often, the companies charging outrageous fees to repair you credit are not doing anything you couldn't do yourself for free. If you do elect to use a credit repair company, you should not have to pay for services up front. You should be advised of your legal rights and how you can repair your credit on your own for free. Credit repair companies should never suggest that you create a new credit identity; this is illegal and you may be subject to prosecution.

Repairing one's credit is not difficult. It just takes a genuine desire to take the necessary steps to attain a good credit rating. Being a newer agent, most of my experience is with "credit challenged" clientele. Through working with people with less than stellar credit, I have learned a thing or two about getting back on the right track. I'd be more than happy to share my knowledge with anyone who needs some help.