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Avoiding Credit Repair Scams After Bankruptcy

Avoid ScamsAfter you file for bankruptcy, you enter the credit world with an opportunity to start over. While that fresh does is definitely not an easy one, you may be able to slowly rebuild your credit if you follow some strict guidelines when it comes to your spending habits (see Credit Repair After Bankruptcy). As you seek to repair your credit after bankruptcy it is important that you understand what a credit repair company can do for you and what they cannot do for you. Having this valuable information may help you avoid credit repair scams.

First of all, you need to be aware that negative information that appears on your credit report that is accurate and timely may not legally be removed from your credit report. This means that any agency that promises you they will be able to remove your negative credit history is looking to make a quick buck off of your misfortune. Do not use services provided by an agency that promises this.

Secondly, be aware that it is a federal crime to misrepresent your credit history. Some credit repair agencies will tell you that you can obtain an employer identification number and use that number when applying for credit or loans instead of your social security number. In this situation, you would be obtaining an employer identification number under false pretenses and you may be charged with a crime. Therefore, it is important to understand that you will be responsible for actions you take to hide your negative credit history—even if your actions are on the account of advice you received from an unscrupulous third party.

Third, it is important to understand that credit repair organizations may not require you to pay for services before they are rendered. Be leery of any credit repair agency that asks you to pay up front before completing any services for you.

Fourth, credit repair organizations are required to give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign any contract with them. If they do not offer this information, consider finding another credit repair agency. You can look over this document to understand your rights regarding your credit report before seeking a credit repair agency for help at http://www.nacraonline.org/consumer_credit_file_rights.pdf.

It is important to remember that there are no quick fixes when it comes to credit repair after bankruptcy. Credit repair scams often make the process of rebuilding your credit seem effortless, but rebuilding your credit after bankruptcy takes time and a commitment to a new way of living within your means. If you need advice on how to repair your credit after bankruptcy, consult your bankruptcy attorney. He or she should even be able to direct you to trustworthy credit repair agencies if that is in your best interest.