"Credit Repair Kit" Sound To Good To Be True? It Is.Written by Tim Gorman
A lot of people have bad credit. It is unfortunate that good people with good intentions are sometimes lured into credit card offers with outrageous interest rates or convinced to buy a new, overpriced car that they cannot afford. Sometimes, it is a stroke of bad luck. You may have recently lost your job or been involved in an accident that made you unable to work which in turn also made you unable to pay your bills. Whatever case bad credit can follow you for a very long time and repairing your credit is no easy task. You may have seen advertisements claiming to be able to repair your credit for only a small fee. Some advertise credit repair kits for anywhere from $10.00-$20.00. This may seem like a small price to pay to have your good credit reinstated. But beware, price is often much higher. Jail time or high fines are price you must be willing to pay since these scams are illegal.
Credit repair kits claim to be able to repair your credit through a process called "file segregation". This is a fancy term for obtaining an employment identification number or EIN. Employment identification numbers can be used to apply for credit instead of your social security number. The problem is that you must use false information to apply for this number. This is illegal and you can be charged with not only misrepresenting your social security number, but if you used telephone or mail to apply for credit you could be charged with telephone or mail fraud.
Questions to Ask a Credit Counseling Service about Debt ReliefWritten by Tim Gorman
Debt relief is a topic on a lot of consumers' minds these days, and with good reason. American credit card debt in 2001 was $692 billion, triple amount from 1989. In that same time period, average credit card increase for a middle-class family was 75%. The amounts were even higher for low-income families and senior citizens. At one time, such a high amount of credit card debt would seem frivolous as buyers spent money they didn't have on luxury items such as electronics or jewelry. Today, however, in less stable economic times and a poor job market, more people are turning to credit cards as a way to extend their income. More and more debt is being rung up for everyday items such as groceries and medical bills. How can people get real help with debt relief?
Credit counseling services were originally established by credit card companies who wanted to get at least some of their money back before a client decided to declare bankruptcy. While that may seem shady to some people, for others it is a legitimate way to pay debt they owe.
When seeking debt relief, however, be wary and be an informed consumer. Do your research before signing on with any one service. Here are some questions to ask: