Credit repair is big business in America… but not all so-called “credit repair” professionals operate legitimately. They are out for a quick buck at your expense. They’ll stop at nothing to get the sale… even as far a spinning a web of dangerous lies.
Here are three of the worst lies we’ve heard from credit repair scam artists.
Lie # 1. They’ll tell you they can create a brand new credit identity for you
If a credit repair company tells you they can create a new credit identity for you… run away fast. There is no legal way to create a “new” identity for anyone. They’ll probably offer to sell you a “CPN” or a Credit Privacy Number. CPN’s are legal, but only in certain situations such as identity theft. CPN’s are NEVER used for purposes of creating new credit identities to erase poor credit.
More likely than not, when they have you fill out the paperwork for the CPN, they will tell you to put down a false address to keep the credit reporting agencies from linking your existing credit report to your “new” one.
Not only will this not work… it could also get you arrested for fraud!
At NCES, we will never offer you a “new” credit file. Instead of trying to cheat the system, we work with the credit reporting companies to restore your credit file using only legal and ethical methods of communication. And, we’ll teach you how to keep your credit in good shape moving forward.
Lie #2. That they know “secret ways” to clean up your credit report
News flash… if it’s secret, it’s probably illegal.
The federal government has strict regulations and guidelines that govern credit reporting and consumer rights when disputing items on your credit report. There ARE no secret tricks or loopholes. Only a credit repair scam artist will tell you there are.
If someone claiming to be a credit repair specialist says they have secret tricks, or is unwilling to explain exactly how they will go about helping you repair your credit, DO NOT let them touch your credit! You will be putting yourself at risk financially and legally.
The truth is, there is nothing secret about the credit report dispute process. You CAN do it yourself, IF you have the time and desire. The process can be frustrating and time consuming, so many people prefer having access to professional advice, like that you’ll get from NCES.
We conduct a thorough review of your credit file and make recommendation about which items can be challenged legally and which should be “restored” for maximum benefit. We’ve helped thousands of people across the United States improve their credit scores while permanently removing inaccurate or invalid information from their credit files. If you have questions, our team of credit repair specialists will be happy to explain our process in detail.
Lie #3. That the best way to clean up your credit report is to challenge everything – even things you know are true and valid
One of the worst lies so-called credit repair companies love to tell is that the best way to improve your credit is to challenge EVERYTHING on your report… whether it is valid or not.
This scammy tactic temporarily puts the items on your credit report “under review”, possibly raising your score a little for a short time. But once the items are “validated” by the creditor in question, your score goes back to where it was, or even lower. These disputes can also sometimes reset the statute of limitation on collection accounts… but that’s another problem all together (link).
At NCES, we have a very different approach. Let’s say that you have 8 student loans on your credit report. (Two small loans from each of the 4 years you were in college.) You paid them regularly for several years, but then you were laid off and couldn’t find work. You contacted your student loan company and were granted a 6 month grace period. But it wasn’t enough and you racked up several late payments on the accounts.
You’ve since started making regular payments again, but those late payments are bringing your credit score down. Instead of trying to delete the payment history of those 8 accounts, NCES will petition with the credit reporting companies to “reverse” the late payments to “paid as agreed”.
By preserving all your good history and reversing the late payments, your credit score will be much higher than if you had simply deleted the whole history.
Why? Because length of credit history makes up about one-third of your overall credit score!
Other warning signs when considering credit repair services:
- • They have no physical address
- • They only accept cash
- • They do not have a written contract for their services
- • They have no money-back guarantee
- • They collect a large upfront “deposit” and ask for more money monthly, or for each credit item repaired.
Your entire relationship with NCES costs only $349. That includes your initial consultation, three complete rounds of professional credit restoration, access to educational resources concerning credit and budgeting, and rapid customer service by our credit restoration team.
NCES is a non-profit credit education company. Above all else, we seek to empower you to understand how credit works and how to leverage credit to build wealth. Only certified non-profit organizations that have undergone a rigorous review by the federal government are permitted to charge an up-front flat fee for credit restoration services. If a credit repair company insists on money up front and is not a certified non-profit, they are breaking the law.
If you have any questions, please give us a call at 770-952-5168 or contact us online.
“Like” us on Facebook to have great tips and breaking credit news delivered right to your phone or computer.
Other articles that may interest you:
Six Places to NEVER use your Debit Card
Keeping the Wolves at Bay – Safely Communicating With Debt Collectors
7 Ways to Improve Your Credit
This information is intended for informational and educational purposes only and not as legal advice. If you have concerns about your credit report, harassment, identity theft, illegal collections activity, garnishments, or property liens, you should consult an attorney who specializes in consumer rights and defense.