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Credit Repair: Beware!Credit repair is a scam. These outfits promise to fix problem credit, remove bankruptcies, judgments and liens and basically erase all the items that are giving you bad credit - FOREVER.They don't. Some will even offer to set up a new credit identity for you. Only consider this option if jail time sounds really good to you. It's illegal and should be avoided. According to the Federal Trade Commission, nearly 25 million American adults fell victim to credit fraud of one kind or another last year, 20% of which had problems managing debt. These businesses are booming, but the fact is, if the negative information on your credit report is accurate, they cannot be removed by credit repair companies. Even if removed from your credit report, the information will only be restored. Do not fall for it. These companies are everywhere. They advertise in the paper, on the radio and on television, targeting people with bad credit, recent bankruptcies, etc. They want hundreds, even thousands of dollars up front and do absolutely nothing in return. A much better option would be utilizing a reputable debt counseling service. Debt counseling (debt consolidation and management) services work with you and your creditors. They arrange a consolidated monthly payment with you and take on payment of your debt. In many cases they can get interest rates and late fees reduced and the regular, on-time payments will improve your credit over time. The credit repair pitch is simple; "Your bankruptcy is on your record for years. You need credit repair to make it go away if you want any hope of receiving credit in the near future." It's a scam. They can't do anything you can't do yourself, and if you do it yourself, it won't cost more than a few dollars. Rather than blow your money with these scam artists, make a solid effort to pay your bills on time, pay more than the minimum requirements and avoid applying for new credit. You can make a serious jump in credit rating in just 6 to 12 months following this simple advice. You cannot fix your credit overnight, but you can fix it. First, get a copy of your credit report. Many companies offer free credit reports online. Next, learn how to read and understand your credit report. Lastly, make a conscious effort to improve your credit score. If you decide to work with a credit repair clinic, follow a few simple rules.
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