Credit challenged car buyers can sometimes be easy targets for companies that employ questionable credit repair tactics
Taking charge of your credit repair
When it comes to repairing car credit, in most cases an auto loan offered by a high-risk lender is the only choice for most consumers.
We understand why this is the case here at Auto Credit Express because for more than two decades we’ve been helping car shoppers with questionable credit find dealers that can offer them their best opportunities for car loan approvals.
We also know that these buyers should ignore many of the advertisements they see in the newspapers, on television and on the internet that promise everything from “easy financing for cars” to quickly erasing bad credit. But don’t just take our word for it; this is what the Federal Trade Commission (FTC) has to say:
Credit repair offers
“Credit problems? No problem!”
“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
Every day, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.
If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:
• The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
• The company doesn’t tell you your rights and what you can do for yourself for free.
• The company recommends that you do not contact any of the three major national credit reporting companies directly.
• The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
• The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
• The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.
Putting yourself at risk
There is also another point to consider – how contracting with one of these credit repair agencies could very well get you into trouble if you decide to follow the wrong advice.
According to the FTC, “If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.”
The Bottom Line
The promises that credit repair companies make should be looked at like everything else you see and hear about: if the offer seems too good to be true, it probably is.
One more thing we want you to know: at Auto Credit Express our specialty is helping applicants with bad credit find those dealers that can give them their best chances for approved car loans.
So if you’re ready to reestablish your car credit, you can begin now by filling out our online car loans application.