The credit reporting system is an arbitrary one. Most listings can remain on a credit history for seven years and some (like bankruptcy) will last 10 years. Although many of those listings lose importance in the algorithms that the reporting agencies use long before the time is up, those marks still hurt the creditability of the consumer.
Creating change is one way that consumers are learning to combat a bad credit history. There has been a long line of companies stepping forward to assist with the changes. Some of the companies follow the guidelines set up by the government and the credit reporting agencies, but others step completely out of bounds. It’s these renegade companies that have put a stigma on credit changes and made many consumers begin to question how ethical these changes might be.
Unethical Changes
Any time a company or individual asks you to lie then you can mark that in the unethical box. There are too many legitimate ways to adjust a credit report for there to be a need to use fraudulent claims. All it does is get the consumer into more trouble and causes the industry to develop a bad reputation.
using a false address to start a new credit history
using any means to set up a new social security number for yourself
filing complaints on credit listings you know are real just to get them temporarily off your credit history
getting an EIN number for the purpose of getting credit
applying for credit using false income information (or any false information)
One or two of these changes might be warranted at some time, but never for the sole purpose of changing your credit history or creating a new one. You need to know what to avoid so that you can protect yourself from legal or additional financial problems. If you hire a company that uses unethical methods then you will be the one that is ultimately responsible.
Avoid companies that:
Ask for money up front – many companies have made the credit correction industry look bad by taking money from desperate consumers and then offering nothing in return.
Don’t explain your rights to you – credit correction professionals are required to explain what rights you have under the law and also to show you the free resources that you can utilize to fix your credit history on your own.
Make broad promises – every credit problem will be different and there is no way for a company or individual to guarantee your problem can be fixed until that particular credit history has been reviewed.
Ask you to provide false information or to lie – if it feels wrong then it probably is wrong. Find a company that can assist you in your credit repair without having to resort to potentially illegal activities.
Finding a credible professional to help you fix problems in your credit history is not that difficult. Using the methods that are available and legal to repair a damaged credit report is perfectly ethical. Independent researches have found that the last two years of credit are really the ones that are pertinent to a consumer’s credit. Credit correction professionals are just trying to help consumers make their current credit histories match the one that is relevant to the situation.
The companies using illegal and immoral actions to “help” consumers or that take the money and run leaving the consumer in even more financial difficulties are the ones that cause the credit corrections industry so many problems. Repairing and correcting your credit is not only ethical but is the right way to begin to get your financial future back on track.
Next: Credit History Limits