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"Have you got bad credit?! Is your low FICO score costing you thousands more in higher interest?! Well, come on down to Quickie Fix Credit! We can fix anybody's credit no matter what! How do we do it?! Don't ask!"
Ever seen an ad like this? We all have. And we should all take ads like that as a sign to steer clear of a company making such claims. Because the truth is they can't do it. Having bad credit is costly, it's embarrassing, it's frustrating, and the desperation that comes with bad credit can lead innocent people to be sucked in by promises of fast and easy fixes. Don't let it happen to you. The Federal Trade Commission warns that you need to very careful when dealing with a company that makes outlandish statements such as removal of bankruptcies. No one can remove a bankruptcy from your credit report -- only the passing of time will.
If you're suffering from bad credit and need help, seek out counseling that can aid you in setting up a budget. Budget counseling done by non-profits are there to help. But beware companies that do any of the following:
Want You to Pay FirstThe FTC says you should watch for any credit repair company that wants you to pay for credit repair services before they provide any services.
Suggest Inventing a New IdentityAn easy fix to a bad credit history is to lose your past and start over again. This however is completely illegal. And even if you were advised by a company to do so, you're the one who will face federal charges for fraud.
Set Up a New Tax NumberThe IRS gives small personal corporations tax ID numbers. Some credit repair reps have steered people toward applying for one of these to use instead of the stained Social Security number. This too is illegal.
Debt Restructuring PlansIf the company you're dealing with pushes you toward a debt restructuring plan, basically they're trying to get you to consolidate all of your debts into one big loan. Be careful here. Your total debt can expand even bigger because of the length of time it'll take to pay off and all of the finance charges.
The Solution: Repair Your Credit Yourself If you really want to repair your credit, there's nothing any company can do for you that you can't do for yourself. The process of obtaining credit reports and contacting the companies you have owed money to is not an easy thing to do, but if you're serious about your financial future it's what needs to be done.
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