Avoiding unscrupulous credit repair claims
One of the key ideas to understand is that you can do credit repair yourself. In the case of Andreen, a businesswoman who sold her house in an attempt to clear off her bank debt and still had outstanding interest and fees after the house sale, the lack of ability to credit repair on her own was so detrimental. Before you reach out to a professional credit restoration specialist, it is important to educate yourself.
You may be asking what Andreen could have done differently in this case? Well, I will share one of the strategies I learned in credit repair by accident and then formally in my subsequent training. In 2010, my son was born with a host of medical complications. Each complication required care and medication. And I had to pay on my credit card in some cases. This continued until 2012 when I was fired from a very high-paying job. All of a sudden, I was overwhelmed with a sick child, medical bills, bad debt, and the daily care and running of my house. So what did I do to give myself breathing room? The same thing Andreen the businesswoman should have done to save her house. Ask for a credit freeze.
A credit freeze
A credit freeze is one of the many tools you can do yourself in credit repair and credit restoration to give yourself time to reorganize your debt. Now a credit freeze is not a trick to get out of paying the debt. It is a strategy to get a break so that you can develop a plan to pay down what you owe.
Beware of fake promises to get away from paying your debt
In the world of credit repair, there are many unscrupulous persons who want to take your money and make fake promises to remove debt from your credit report. In North America or online, you may hear or see advertisements claiming outstanding credit repair services offering you “legal” and “guaranteed” solutions for your credit problems. These services may use mottos that are quite enticing to those who are in dire need of credit repair. There are even others who get easily convinced after reading “authentic” testimonials from several customers, who might not actually exist.
#FinanciallyFocused and the #CaribbeanCreditRepairAssociation have teamed up to launch the Credit Restoration Professional Training course to empower individuals to not only resolve their own credit matters but to enter into a new profession. With this new certification offered in the Caribbean, communities can benefit from solid guidance to build back their good financial name.
Let me repeat, credit restoration strategies like credit freeze do not wipe away your debt. When you are really in need of credit repair, the first thing you want to do is to act immediately. You should remember that this action should be done by you and not anyone else. Luckily, there are several factors that can help you avoid scam credit repair services.
The Fraud
Day after day, several companies appeal to consumers who have awful credit histories. Often, they promise to tidy up credit reports, for a price, to help consumers loan a car, mortgage a home, or even get a job. The horrible fact is they cannot deliver; you should keep this in mind especially if you do not want to worsen your debt. These companies would only take the cost of the services with them and vanish into thin air. The Caribbean Credit Repair Association (CCRA) not only offers the Credit Restoration Professional training but persons who pass the exam are listed as members in good standing. Should any member of the public file a complaint against a CCRA member, that person will be investigated and placed on a blacklist. Consumers now have an opportunity to know unscrupulous persons different from the Credit Restoration Professionals.
The Signs of a Scam
That said, it is good to be on the guard for companies who cannot help you and are not certified. If you had responded to a credit repair service, there are warning signs that can help you determine an authentic credit repair offer from a fraud. Firstly, be aware of companies that wish for you to pay the cost of the repair before providing any services. In addition, avoid those companies that do not divulge any possible legal rights you are entitled to and what processes you can do yourself without payment. More so, if the company you have responded to suggests that you create a new credit identity using a different national or business identification number and then make a new credit report, you should immediately stop contacting that company.
Lastly, those that advise you to argue all information included within your credit report or take actions that may seem illegal, i.e. generating a new credit identity, should be avoided.
Request your free credit report
The best possible way to avoid poor credit history, and totally keep you safe from fraudulent credit repair services, is to do a periodic credit report review. You are entitled to a free credit report each year. In the Caribbean, free credit reports contain raw data only. You will be asked by the Credit Bureaus (there are two in the case of Jamaica) to pay for a credit report that has your credit score and a summary of explanation. Reviewing your credit report is important because the information in your report affects your chances of getting insurance or loan. Make sure that the information is correct, complete, and regularly updated before applying for a loan. Lastly, by doing a periodic check-up on your credit report, you can be safe from identity theft, which can create a major problem not only in your credit report. And should you require professional help, it is best to deal with persons who have the Credit Restoration Professional designation. At #FinanciallyFocused, we’re allllll about teaching you how to build YOUR own dreams and create your own TRANSFORMATIONS!! https://www.udemy.com/course/power-up-investment-returns/learn/lecture/24907130?referralCode=E37DB4D3CD41A18E3685#overview
