Latest news with #creditrepair
CTV News
05-07-2025
- Business
- CTV News
Christopher Liew: How do I fix a bad credit score?
Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. Mistakes happen. Perhaps you've missed a few payments, maxed out a credit card, or have an account that's been sent to collections. Unfortunately, these seemingly small mistakes can be the difference between a great and a problematic credit score. The good news is that your credit score doesn't have to stay stuck. Below, I'll share some simple tips to help you fix your past mistakes, get negative items removed from your credit report, and rebuild a fresh, more positive credit profile. The effect of credit mistakes on your score Marriage and relationship counsellors often quote the 'magic' 5:1 ratio - the idea that for a relationship to be successful, each negative interaction should be balanced by at least five positive interactions. While it's not an exact ratio, the same principle largely applies to your credit profile. You can do everything right (pay your bills on time, keep your credit utilization rate low, etc.), and your score will slowly increase over time. However, the one mistake you make (a 30-day late payment, maxing out your credit card) can cause a drastic overnight drop in your score. Negative marks on your TransUnion or Equifax credit report will typically remain for six to seven years, acting like anchors that hold your score back, even if you've done everything right since your mistake. While negative marks can often be corrected or deleted, this process can often take months or years, making it imperative to avoid them as much as possible. How do I increase my credit score? You'll find no shortage of credit myths on social media designed to give you false hope or fill you with fear. That said, here are the most practical, time-tested ways to help you fix your credit. 1. Check credit report for mistakes Your credit report often isn't as infallible as you may believe. This is why it's important to check your credit reports from both Equifax and TransUnion periodically. Sometimes, lenders or creditors you work with can make mistakes resulting in misreported negative marks on your report, bringing down your score. For example, I've had friends who've made all of their payments early or on time, only to find out later that the lender misreported a late payment due to an administrative error. By law, Equifax and TransUnion are required to provide Canadians with free credit reports (updated monthly) upon request. If you want even quicker updates, both credit bureaus also offer paid credit monitoring services that will update you in real time as your credit report changes. If you find any mistakes on your credit profile, you should contact both the lender and the credit bureaus to clear the issue up and get the negative mark changed on your credit report. 2. Pay down credit card balances Even if you have no missed payments and make all of your monthly payments on time, a high credit card utilization rate can bring your score down, as it shows irresponsible use of credit. Ideally, you should try to keep your revolving credit utilization rate under 30 per cent. For example, if you have a $10,000 credit card, you should avoid carrying a balance of over $3,000 into the next billing cycle. If you have cards with a balance of more than 50 or 60 per cent of their spending power, paying these balances down can be a quick way to get your score back on track. 3. Avoid new credit inquiries New credit inquiries, especially when applied for frequently in a short period of time, can deal a sharp blow to your credit. This is why realtors caution new home buyers to avoid applying for any loans or credit cards until they've closed on their house. Whenever you apply for a new credit card, a loan, or a rental unit, you'll receive an inquiry mark on your credit report that will remain on your report for two years. Ideally, you should try to keep your inquiries to fewer than two or three in a one-year period. 4. Consider a debt consolidation loan If you are in a very difficult situation, such as facing bankruptcy or falling far behind on payments, a debt consolidation loan could be an option to explore. This is a special type of personal loan that combines multiple debts into one more manageable payment. Instead of juggling several high-interest accounts, you would make a single monthly payment, often at a lower interest rate. This simpler structure can help you stay organized and avoid missed payments. Keep in mind that applying for a debt consolidation loan can cause a temporary drop in your credit score because of the hard inquiry and the new credit account. However, if the alternative is bankruptcy, consolidating your debt is often the better choice in the long run. It can help protect your credit from more severe damage and set you up to rebuild your score over time. Debt consolidation loans are usually best suited for serious financial hardship, not minor cash flow issues. It is important to review all your options and speak with a financial professional before deciding 5. Get a secured credit card If you've shot your credit and blown your chance at being trusted with a traditional credit card, the best way to rebuild trust with creditors is to apply for a secured credit card. These work a lot like prepaid debit cards, and you start by 'reloading' them upfront. The difference is that each time you reload your secured card, you'll receive a positive credit card payment mark on your report. How long does it take to fix your credit? Repairing your credit isn't an overnight process, especially if you have accumulated multiple negative marks over a long period of time. In a best-case scenario with just a couple of negative marks on your report, you might be able to get mistakes removed or deleted within a few months. For more complicated cases, credit repair can easily take a year or longer as you go back and forth with creditors and credit bureaus. That said, the alternative is waiting six or seven years for negative marks to gradually fall off of your credit. While credit repair can be tedious, it can also fast-track the process of getting back on top of your personal finances. More from Christopher Liew:
Yahoo
02-07-2025
- Business
- Yahoo
How to compare credit repair companies
You can do credit repair on your own for free, but the process can be time consuming and involve multiple steps. Credit repair companies can help you improve your credit by identifying inaccuracies on your credit report and having them corrected — in exchange for a fee. Check the credit repair company's products, services, pricing and track record to ensure you're choosing a solution that works for you. Any type of credit repair you choose can potentially help you identify and fix inaccuracies in your credit report. You can always repair your credit score on your own, but it requires time. Another option is to work with a credit repair company, which can handle the process of contacting creditors and credit bureaus on your behalf — for a fee. Carefully weigh the time commitment against the potential cost to determine the better choice between a DIY approach and a credit repair company. When researching credit repair companies, consider the timeline, fees and overall process to potentially avoid credit repair scams or costly mistakes. Doing so also helps you select the best service for your situation. Inquire about the estimated timeline and what to expect during the process. Research the credit repair company's process to know what to expect. Ensure you understand how long it may take to see a difference in your credit score. Typically, credit repair companies offer a free consultation to determine your potential timeline and help you decide if credit repair is the right approach. A bad credit score could mean a far longer timeline. You'll likely also have to do more work on improving your money management habits. If you only have a few items in your credit report to address, it might take significantly less time to work through the program. However, if this is the case, you may also be able to easily work through the items on your own without paying a fee. Carefully review services offered and packages — if applicable — to find the best fit. Basic packages sometimes don't include filing disputes with all three credit bureaus, or the number of disputes per month may be limited. This may limit their usefulness, depending on your needs. Premium packages may provide more comprehensive dispute services that include multiple or unlimited credit disputes each month across all three main credit bureaus. They may also provide tools like credit score monitoring, identity theft protection and more in-depth customer service. You can also explore a lower-cost alternative, such as a credit-building product or repairing your credit on your own. Evaluate the services offered thoroughly — items like credit score monitoring may already be available through your bank. Compare pricing with the level of service each company provides to choose the right option. Even some of the best credit repair services charge a monthly subscription fee. Since credit repair is something you can do on your own for free, it's important to determine whether you can afford the fee and if the services provided will be worth the cost. If you decide to move forward, expect a monthly fee of $50 to $150. However, fees vary by credit repair company and the level of service provided. Be mindful of the cancellation policy and opt for companies that are more lenient. Credit repair can take three to six months. After that, you will likely not need your subscription anymore. Research whether there are penalties for canceling your subscription and how quickly you can suspend it once you achieve your goal. You're not obligated to move forward with credit repair services if you reconsider within three business days of signing up — depending on the state you live in, you may have longer. Instead, you can request a cancellation in writing and avoid any fees associated with the services. Ask about money-back guarantees if you aren't satisfied with the services, and avoid companies that guarantee results, as this is illegal. Credit repair companies can't guarantee results upfront. The success of any potential repairs will be dependent on whether there are actual inaccuracies in your report that can be fixed. Ask if the company will refund any charges if you don't see any results within a specified period. It's equally important to know that credit repair companies are legally prohibited from collecting payment for services upfront. If you encounter this issue, move on to a more reputable option. Read online reviews from trusted sources and check for open cases in the CFPB's Consumer Complaint Database. The credit repair industry is full of scams, so be sure to vet a company's track record before signing up for any services or sharing sensitive information. To find the best credit repair company, check the company's name on the CFPB's Consumer Complaint Database and see if there are any cases opened against it by the FTC. In addition, look at the company's reviews on the Better Business Bureau's website and on Trustpilot. In most instances, there will be a disgruntled customer or two even if the services provided are up to par, but if there are multiple negative reviews with consistent themes, you may want to explore other options. Keep an eye out for any company that tries to charge you before completing any work or recommends you enter false information on credit or loan applications. Working with a credit repair company can be costly and may not be the best choice for everyone, so it's a good idea to shop around and compare credit repair companies against other options. If you don't have the time to do it yourself: If independently disputing items on your credit report with the credit bureaus is not something you have the time or patience to do, hiring a reputable credit repair company can be helpful. If you can afford the cost: The fees charged by credit repair companies can sometimes be steep, especially compared to a no-cost DIY approach. But if you find a company charging a reasonable rate or your credit report needs a significant amount of work, it may be a good idea. If your credit report needs significant work: If many items on your credit report need to be addressed, it may be easier to work with a credit repair company. However, if there are just a few items, you can likely tackle it yourself without the expense associated with a repair company's services. If you'd prefer not to hire a company to do the legwork for you, consider credit repair alternatives. DIY credit repair: You can handle the entire process on your own and avoid the fees associated with hiring a credit repair company. It will take a little more time and effort on your part, but it will save you money. Focus on your payment history: Pay all your bills on time and bring any past-due accounts current, as payment history is the largest component of the credit-scoring calculation, regardless of the scoring model used. Meet with a credit counselor: You can connect with a professional who assesses your situation and creates a plan of action to improve your credit profile and overall financial health. Credit-builder loan: In some cases, credit-builder products may be a good choice. You can likely get a credit-builder loan at your local bank or credit union. Consolidate your debt: Roll all your debts into a loan to simplify the repayment process and lower your credit utilization ratio, which is another large chunk of your credit score. Just be sure to shop around and get the best debt consolidation loan available to you at your current score. Consider the pros and cons of credit repair before committing. The process can cost you money or require additional commitments, depending on your chosen approach. Factor in your free time, disposable income and other financial goals when weighing your options. If you choose to have a company do the work for you, research its credit repair packages and reputation within the space before signing up for any services. But if you want to handle credit repair on your own, research alternatives to determine which is most suitable for your situation.
Yahoo
28-06-2025
- Business
- Yahoo
Ramsey Show hosts urge young woman whose mom racked up $186K of debt in her name to embrace a ‘paradigm shift'
When she turned 18, Jessica from South Carolina found out her mom had been using her Social Security number since she was a toddler — racking up $186,000 of credit-card debt in Jessica's name. After hiring a lawyer, Jessica was able to have her credit wiped clean, but she's left with zero credit history and can't get a credit card. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it She called into The Ramsey Show to find out how she could recover from having her credit history wiped. 'Not even a secure credit card will touch me,' she said. Jessica feels 'stuck' and says she can't even buy a car with a co-signer. While she says some financial advisors suggested her 'best option' is to get married, co-host Ken Coleman flagged that suggestion. 'I want to challenge this idea that you're stuck because you have no credit score and that you have to get married in order to have a car,' he said. Read more: You don't have to be a millionaire to gain access to . In fact, you can get started with as little as $10 — here's how Nor would it necessarily solve her issue. While credit scores aren't impacted by marriage, if a married couple jointly applies for financing on a large purchase, such as a home or car, Equifax says lenders usually check both spouses' credit information. So what's the solution? It involves a pretty big 'paradigm shift,' according to co-host Rachel Cruze. Jessica is focused on living her life around 'having a great credit score.' But, as Cruze points out, 'primarily you use a credit score to go into more debt.' That paradigm shift involves living debt-free — without a credit card. Consider that Americans owe $1.18 trillion in credit-card debt as of Q1 2025, according according to the Federal Reserve Bank of New York. And the average credit-card debt, per American, was $6,371 during this same period, according to TransUnion's Q1 2025 credit industry insights report. Plus, high annual percentage rates (APRs) on credit cards can make it even harder to get out of debt. 'Although Federal Reserve rate cuts began in 2024 after two painful years of rate hikes, average credit-card APRs are still well above 22%, offering no relief to consumers who revolve balances from month to month,' according to Experian. Thanks to her credit being wiped, Jessica is debt-free. She doesn't even have the option to apply for a credit card to get into more debt, 'so see that as a blessing,' said Cruze. While Jessica has a full-time job as a debt collector and makes $19 an hour, Cruze suggests she look for a side gig (or a higher-paying job) to earn some extra money each month that she could put toward a vehicle. If she made an extra $2,000 a month, for example, she could save enough to pay cash for a $5,000 to $7,500 secondhand vehicle in a matter of months — no credit card required. In a survey by Forbes Advisor, 58% of respondents said card payments are 'their prime facilitator of higher spending,' which is 'a reflection of the ease and perhaps the less tangible nature of using cards over cash, which seems to loosen the psychological purse strings.' And more than half (52%) of respondents are 'more likely to make an impulse purchase when paying with a card compared to just 24% with cash.' 'Society tells us you have to have a credit card to survive, you can't go to college without student loans and you'll always have a car payment. These are straight-up myths,' according to a blog by Ramsey Solutions. On the other hand, living debt-free means 'not buying anything unless you can pay cash.' Cruze says to start by coming up with a detailed budget and knowing exactly how much you'll need for basic necessities such as food, shelter, utilities and transportation. Everything else can go toward saving up for your biggest needs — in Jessica's case, that would be a car and her last semester of college. 'As you track your spending, you'll see red flags and how quickly you get to the point where you're spending more than you earn,' according to the Credit Counselling Society, which recommends using cash instead of cards. 'Cash-only diets are a great wake-up call to your spending because you physically see the money exchange and feel the drain on your wallet.' If you have multiple credit cards, consider consolidating your debt onto one card (the one with the lowest interest rate or best terms) and cancel any cards you don't need. You'll also want to build up an emergency fund so you won't have to rely on your credit card if you suddenly need money for an emergency. While Jessica is 'blessed' without a credit card, those looking to get out of debt can use techniques such as the snowball or avalanche method to whittle away high-interest debt. Most likely, it will also involve increasing your income (working overtime, looking for a higher-paying job or taking on a side gig) while reducing your expenditures (cutting back on anything unnecessary, such as takeout, travel and entertainment). To realize even greater savings, you could also look at ways to simplify or downsize. For example, is your rent eating up most of your income each month? If that's the case, it may be time to look at finding a smaller place, getting a roommate or moving to a less expensive neighborhood (though you'll also have to factor in the cost of moving). 'Don't be leaning on the credit industry to get you out,' Cruze advised Jessica. In other words, getting a credit card isn't going to solve her issues; it will only serve to get her into debt. And, advised Coleman, 'don't get married at the advice of a financial advisor so you can get a car.' This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNET
18-06-2025
- Business
- CNET
My Mom Stole My Identity When I Was a Kid. Now I Have a Credit Score and Career I'm Proud Of
I didn't grow up learning about money, but my mission was to change that after suffering identity theft. Jeffrey Hazelwood/Cole Kan/CNET/Like plenty of teenagers, I planned to move out the moment I turned 18. I was determined to pay my own rent and live by my own rules. But when I applied for my first apartment, I was hit with an unexpected hurdle: I needed to put down a larger deposit because of my low credit score. I hadn't even opened my first credit card yet, but somehow my score was in the 400s. While there isn't a set starting credit score, 400 is low for an 18 year old. Suddenly, I remembered the times my mom would use my name for different bills that she could no longer put in her own name. At the time, I didn't understand what that meant. But as an adult, I realized my mom stole my identity and ruined my credit. It's painful, but it's real. Just because the person who used your identity is family doesn't make the impact any less serious. Today, my credit score is above 800, and I'm an accredited financial counselor and a certified financial therapist. Take it from me: Even if your identity is stolen and your credit is tarnished, you can rebuild it. Whether you've experienced something similar to me or just want to be prepared, I hope my story serves as proof that recovery is possible and that you have more options than you think. Here's how I reestablished my identity and got my credit back on track. How I found out my credit was wrecked When I applied for my first apartment right after high school, I was shocked to find out I needed to put down a larger deposit than I planned for -- the equivalent of $600 in 2025. There was no way I could afford that, and my plans blew up on the spot. I was denied my chance of finally stepping into adulthood and getting the fresh start I desperately needed. Defeated, I went home and researched how to pull my credit report. It turns out I had past-due balances on cable, cellphone and utility accounts that I didn't even know existed. The hardest part was coming to terms with the fact that my mom was the one responsible for all of it. The signs had been there, but as a kid, I didn't know what to look for. I knew she had used my name to set up some bills. I wish I had known sooner how important it is to monitor your credit -- even as a minor. I wish I knew that a parent, even one with good intentions, could cause serious financial harm without realizing it. Growing up, we didn't talk much about credit or finances unless it was about what we didn't have. But, like so many people, I didn't truly learn about credit until it became a problem. How I took control of my credit After reality set in, I was faced with a painful choice: I could file a police report against my own mother, or find a way to move forward without involving the law. I didn't go to the police. I couldn't bring myself to report my mom. I know some people would, and I don't blame them, but that wasn't a step I was emotionally ready to take. At 18, I didn't have a lot of guidance, but I had determination. I started taking control of my credit by printing out my credit reports and calling the numbers listed for each account I didn't recognize. I explained to each creditor that the accounts were opened when I was still a minor and that they didn't belong to me. I documented everything by keeping notes of who I spoke to, what was said and what paperwork I sent, including copies of my ID and dispute letters. With some creditors, it was straightforward to remove an account. But others weren't as cooperative. Some companies didn't care how old I was when the accounts were opened. They simply wanted their money. When that happened, I turned to the credit bureaus and submitted disputes with all three: Equifax, Experian and TransUnion. I also bit the bullet and paid off a few small balances myself, just to move on from them. As for the balances I couldn't resolve, I followed the advice of someone who believed in the, "it'll drop off in seven years" approach. Looking back, that was not the best way to handle the delinquent accounts because it prolonged my end goal of fixing my credit. Instead of waiting for accounts to fall off my credit report, I should've been proactive by disputing inaccuracies right away and negotiating settlements or payment plans. How I increased my credit score Here are the key steps I took to rebuild my credit and regain control of my financial life. I opened a secured credit card My first step was applying for a secured credit card. I put down $200 as a deposit, which became my credit limit. It felt small at the time, but it gave me a way to start rewriting my credit story. In the beginning, I would max out the card and pay only the minimum. However, as I continued to learn about how credit works, I realized that was hurting more than helping. You should pay off your credit card balance in full each month to avoid interest fees. So I changed my habits. I only used the card for things I could afford and paid it off in full each month. I kept the balance low and never maxed it out again, which helped show consistent, responsible credit usage. I set up payment reminders I started setting reminders and making sure every payment was made on time. I also created budgets. It became a personal mission to never let my past define my financial future, even when it meant saying no to things I wanted in the moment. I left accounts open and limited new credit Once my credit started improving, I resisted the temptation to open more cards or loans I didn't need. I also kept my credit usage low and my oldest accounts open to help my credit history look stronger. The more my credit aged in good standing, the more my score improved. I kept learning I didn't grow up learning about money, but I made it my mission to change that. I learned a lot by reading articles, watching videos and following financial experts. Then I took it even further. I went to Georgia State University, earned my accounting degree and became an accredited financial counselor and a certified financial therapist. Eventually I became the person my friends and community turned to for advice on credit, budgeting and rebuilding their financial lives. The more I learned, the more confident I felt and the fewer financial mistakes I made. Rebuilding my credit wasn't quick or easy. But with time, patience and consistency, I went from a credit score in the 400s to over 800. Consider signing up for identity theft protection if you've been the victim of a scam or identity theft. Aura is CNET's pick for the best identity theft protection service.
Forbes
12-06-2025
- Forbes
The Fraudulent Human Trafficking 'Hack' That's Erasing Bad Credit
New credit repair scams are exploiting CFPB lifeline for human trafficking survivors Maria (not her real name) thought she had found the answer to her prayers when she found a TikTok influencer promising to boost her credit score by over 100 points in as little as seven days. She needed a car for work, but her credit score was bad, and she couldn't get financing. What she didn't know was that the influencer was about to embroil her into a fraud scheme by claiming she was a victim of human trafficking. Maria was just one of thousands who have been caught up in a credit repair scam sweeping social media - 'The 7-Day Credit Hack', and just the latest example of how people are unknowingly being lured into sweeping fraud schemes on social media. In 2022, The Consumer Financial Protection Bureau, created a new lifeline for survivors of human trafficking. The rule allowed people to submit proof they were victims of human trafficking to credit bureaus, who would then be required to remove the negative items from the victim's credit report within four days. The intention of the rule was noble - help human trafficking survivors rebuild their financial lives after their captors exploited their credit, taking out cards and loans in their name without repaying them. For victims, providing proof was straightforward. They could provide documentation from a court, an NGO, or a human trafficking task force confirming they were a victim, or they could simply offer a "self-attestation letter." It was the letter that scammers honed in on. Virtually anyone could easily create a fake attestation letter and use it as proof of human trafficking. The CFPB even published a template letter that anyone could simply fill out as proof. Self attestation sample letter provided on the CFPB website It didn't take long for credit repair companies and influencers on social media to sniff out the business opportunity with the new CFPB rule. They could charge thousands to help people exploit the system. By April 2024, TikTok, Instagram, and Facebook videos were popping up everywhere, advertising the "New 7-Day Credit Sweep". People could merely log in to the credit bureaus, dispute all the negative credit items, and upload a self-attestation letter explaining they were victims of sex trafficking. One influencer says in a popular video, "First, you are going to want to set up an account on "Then, you will want to include all of the accounts acquired when you were 'human trafficked'. She emphasizes the words human trafficked by holding up air quotes with her fingers. "And finally, you will need to upload a victim determination letter. Its that easy.", she concludes. The technique apparently worked. Within 4-7 days, people were reporting that their bad credit had vanished, and their credit scores shot up - sometimes by 100 points or more. And for people that didn't want to do it, experts were more than willing to do the sweep for a price. For a payment between $1,000 to $2,000 they would sweep the credit for them. One person that watched the it emerge and warned people to avoid it - The Credit Plug- reported the scheme on his YouTube Channel and advised people to 'leave it alone'. The "7-Day Credit Hack" was reported by The Credit Plug in June 2024 with a warning not to try it 'As anyone knows these types of situations are 100% being abused right now,' he says, 'where people who may not necessarily have been a victim or survivor are using this loophole to get things wiped off of their credit report.' Social media wasn't the only place lit up with red flags that something was amiss. Signs were also showing up in industry reporting. First, there was CFPB's own reporting that showed a spike in complaints submitted by consumers through their portal - a 285% increase from 2023 to 2024, after the new rule went effect. CFPB consumer complaints submitted through their portal show a 285% increase in the last two years Credit repair companies will often file complaints with the CFPB on behalf of consumers while they perform these credit sweeps. Point Predictive tracked a suspicious spike in "credit washing" during the social media hack last year. Credit washing is the finance industry's term for any activity where borrowers fraudulently remove bad debt through false identity theft or trafficking reports. The analysis showed a 161% increase in applicants for auto loans who appeared to have erased their bad credit through credit washing. Suspicious Credit Washing (where consumers erase bad credit by falsifying reports) appeared in 1 out ... More of every 60 auto loan applications Those credit washers can result in big losses to financial institutions. In 2023, Sentilink found that the losses to the credit card industry alone from credit washing was more than $297 million. It wasn't like the CFPB wasn't warned that the rule would be exploited. The American Bankers Association predicted it would most certainly happen. In a letter to the CFPB dated May 9th, 2022, months before the rule went into place, they wrote that it would encourage criminal activity. "The ease of blocking accurate information by submitting to a governmental entity a form in which the person self-identifies as a victim will allow and encourage people who are not victims of trafficking- including criminals-to block accurate negative information in their consumer reports, introducing the risk of widespread inaccuracies in consumer reports." And they weren't the only ones raising the red flag. Other industry groups including the American Financial Service Association (AFSA) argued people would use attestation as a way to remove accurate information from their credit reports. It's a cruel irony that a rule designed to help society's most vulnerable victims has become a weapon for criminals who want to exploit it. And that hurts survivors more than anyone else. Many will face a "cry wolf" effect as the system becomes more skeptical of all claims, forcing them to prove their claims with even more documentation and proof. Consumers should be wary of credit sweeps on social media and following some practical advice. When someone promises to wipe your credit clean in less than seven days for $1,500 thats not a miracle, its likely just plain old fraud. And while it may seem like an easy and painless process, they could be filing fraudulent documentation or claims in your name that could be tied back to you in the future. Honest credit repair does exist, but it can take weeks and involves careful attention to finding actual errors on your credit report and removing them through a legitimate process. And be cautious of any credit sweep that promises to remove 'all of your bad credit' including legitimate items you are responsible for. Before working with a credit repair company, check their online reviews as well as any complaints that they have with the Better Business Bureau. Legitimate credit repair companies don't guarantee unrealistic results or demand large payments before doing any work. Those are high pressure tactics that should be considered a red flag. They will also not ask you to sign false affidavits claiming you are a victim of identity theft or human trafficking. Remember, those documents are official records that are often retained and can be used against you later if they suspect fraud, which unfortunately is increasingly common now.
