Broken By Your Credit Card? Credit Repair Service Can Help

Sure, we all love them but when misused, a credit card can break us. Too often, there is no self-control associated with credit card use, which means you are quickly in debt and then losing sleep over it. If you are tired of being drug down by credit card debt, we have good news. Credit repair services are offered throughout the country, providing services online and in person. Although not every company is honest, the Federal Trade Commission or FTC has developed a number of safety guidelines that help consumers choose a reputable company.

Scam Warning Signs

Just as there are many different options of credit cards, you will find as many, if not more debt reduction companies to match. When looking for a service to help you, make sure they follow federal laws. Most importantly, if a company makes outlandish promises, you should be suspicious. These companies should have one goal in mind - teaching you better money management for life, not using various services to fix the problem temporarily. Therefore, if you read advertisements for quick fixes, rather than financial education, beware. Some of the more common statements made associated with a scam include the following:

Repair your credit " 100% guaranteed (this is impossible) Get a new credit identity (this is illegal) Get all bankruptcies, low credit scores and liens from your credit file eliminated (ditto) No credit problem to bad for us to fix (this means they are stupid)

The bottom line is that credit repair services can help you get out of debt but to do so, they must adhere to federal laws. This means they must also advise you of free steps you can take to correct and better your credit report. Any company that asks for money upfront to obtain your credit report is lying. You as the consumer can ask for a free report once a year from each of the reporting agencies. Therefore, if they ask for money to obtain one means they are trying to scam you.

All you have to do to get a copy of your reports from Experian, Equifax, and TransUnion is to request one in writing, fill out an online form, or call them on the phone. Now, if you want to find your credit score, which is different from the credit report, you would typically be charged a small fee.

The Credit Repair Organizations Act

Because credit repair services are actual businesses, they are strictly regulated by the Federal Trade Commission. To ensure you are protected, a law was established called the Credit Repair Organizations Act, which states that all debt reduction companies must inform you of your rights prior to any money being paid for their services.

Also, a debt reduction company is not to charge you until they have completed their services to you. And, if you catch them making false claims about their services, you should contact the FTC as soon as you can. They are doing something illegal. By keeping these tips in mind, you can fix the damage done to you by a credit card. Credit repair services can help.