Everyone is trying to fix their credit these days, and there are more options than ever that you can take advantage of in order to increase your credit score.
However, there are a number of credit repair scams that you'll need to be aware of so that you don't waste your money while you're trying to get your finances back in order.
Here are some scams that you'll need to watch out for, as well as some of the ways you can fix your credit yourself.
One of the most common credit repair scams that you'll see these days is through email.
If you are getting unsolicited mail from companies that claim they can 'get you out of debt', these are most likely spam, and you should get them out of your inbox immediately.
Also, if you are getting emails from a company that you may have worked with before, and find that the logo or color schemes of the email are different from messages you were receiving before, you should contact the company to ensure that the emails are authentic.
A number of credit consolidation companies that you may find online may also be credit repair scams.
If a company asks you for payment before they have completed their services, do not continue to work with them.
Legally, consolidation companies are not allowed to request payment until they have completed the job of negotiating with your creditors and contacting your debtors to make alternate payment arrangements.
Also, if a consolidation company claims that they can erase the negative items on your credit report, you should steer clear.
No one can legally erase negative items on your report; creditors can note on your report that your account has been paid, but negative accounts will stay on your report for seven years from the date they were reported.
One of the best ways to avoid credit repair scams is to start fixing your credit yourself.
Set up an account for yourself that is solely used for bill paying; this way, you will know that the remainder of your money is spent on leisure activities, entertainment, clothing, or emergencies.
You should also create a detailed budget for yourself, so that you can see how much you owe to creditors every month.
This will help you to determine whether or not you need to get a second job, or cut down on recreational spending.
If you see that paying your bills and trying to keep up with other household responsibilities is becoming too overwhelming, you may want to consider writing a debt negotiation letter.
This way, you can work with your creditors to come up with an alternate payment plan that will work for your budget.