Driving around, you see the signs—they may have different numbers, but they all promise the same thing. To make your bad credit go away.
“Basically playing off of people’s fears,” says Tyloria Crenshaw with the Better Business Bureau.
I called one of those numbers and was connected to Capital Credit Protection, based out of Jacksonville, Florida. The lady on the other end spoke very fast, and said I could dispute my debt and they would work with the credit agencies on my behalf!
They told me they could get approval to wash my credit clean so I wouldn’t have to pay back any of my debt and I could just sit back and watch my credit score go back up.
All for a price though–$250 up front and $69 a month for as many months as it takes. So I decided to drop by the Better Business Bureau to ask about this business. And what we found did not help.
“Several of their companies of violating an earlier court order to stop selling bogus credit repair services nationwide,” says Crenshaw.
And in fact, what they’re doing is illegal, and a waste of your time and money.
“They take your money and they set it in a savings account and basically what they’ll do is they’ll call up one of your creditors and they’ll try to settle your debt,” says Monica Wiggins with Lifelines Counseling Services.
And that will actually hurt your credit more than it will help it.
“It is not good for a third party, for you to hire a third party to talk to your creditor,” says Wiggins.
The best thing to do is talk to your creditors. See if they can lower your interest rates so more of your money is going to principle instead of interest. And also get a better idea of what’s on your credit report. Go to AnnualCreditReport.com to review all your credit cards and your payment history. It’s free once a year. You’ll have to pay if you want to see your credit score, but at least the report can give you a good idea of what your credit history is.
“Do your research, look online and make sure you’re doing your proper research, make sure you’re going to a reputable source,” says Wiggins.
Visit these websites for more: http://www.creditcards.com/credit-card-news/script-negotiate-better-credit-card-deal-1267.php