Credit and debt counseling has become a booming business over the last few decades..
For many people, their most important dream is to own a home...
If you have amassed a rocky credit history and if you are burdened with a low credit score

How to Avoid Credit Repair Scams

For every need in the world today, it seems there is a scam to match it. If you’re looking to repair bad credit, it’s easy to fall for promises of fast and painless credit repair promises from debt consolidators and counselors. But like Mom said, if sounds too good to be true, then it is.

Understand That All Good Things Come In Time

Realize first that it will take time and effort. Those who tell you that it’s fast, easy, and cheap are lying to you for their own benefit. Instead, pay off bad debt, fix your credit report errors, hold a job, build up a savings, and avoid scams.

Beware of People That Approach You

First, hang up on telemarketers, throw away flyers, and ignore radio, TV, and internet ads that offer credit repair services. You are the only one who can repair your credit with good money handling skills—only you can prove yourself.

These companies offer to fix your credit fully, but for a fee. They take your fee, have you pay them a monthly installment, and they claim to pay your bills. Sometimes the scare the daylights out of you by telling you it will take years to pay off your current debt and they could help you do it in months.


Consider Fees That Are Charged for Credit So-Called Repair Services

The truth is, if you compute their plan against paying even the minimum payment on all your loans and credit cards, often theirs will take much more time and be far more expensive. Check the claims of the debt consolidators yourself using MSN’s Moneycentral debt calculator (

What to Avoid:  A Specific Look

In general, avoid those who:
Ÿ Say they alone can solve your problems, and won’t tell you what you can do for yourself.
Ÿ Claim fast and easy solutions for credit problems.
Ÿ Charge a fee before they do anything for you.
Ÿ Have a 900 number, where you will pay for the call before you find out anything.
Ÿ Advise you to dispute all negative charges on your credit report—this is fraud.
Ÿ Try to get you to change your credit identity.

What You Can Do, What You Should Do ...

Instead, hold a job, save some money, pay bills on time, and rebuild your credit yourself. If it’s too far down the hole you may have to file bankruptcy. Just remember that either way, rebuilding a good reputation takes time, savings, small steps in getting more credit, and a lifetime plan for handling your money. Nothing else can clean up bad credit like good money habits.

By paying attention to the recommendations in this article, you will be able to take care of credit problems that you may have.  You will be able to avoid scams that can cause you even more problems ... not only today but well into the future.