Everyone wants to find the "get rich quick" method to repairing their poor credit score, but the problem is that there really is no overnight method to changing your credit score around. The even more unfortunate fact is that there are countless amounts of people out there that are going to exploit the fact that you have bad credit and try to rip you off. This is outrageous and something that happens too often in many different realms of business. With that being said though you need to know what out there is most likely a scam.
Now this is when the saying "if it is too good to be true, it probably isn't" saying will ring very true. When it comes to really repairing your credit score your two main options will be either patiently using a credit card and making your payments or by taking out bad credit used car loans as another alternative. Both of those are going to be reliable methods, but other than that just about everything that says they can restore your credit over night or in just weeks will most likely be very untrustworthy.
Some of the Dangers out There
There are many dangers that you may potentially come across when you are researching what you can do to help your future credit, but there are some that are going to pop up more regularly. One of the largest tricks that people come across will be referred to as file segregation and is going to sound very appetizing to someone with a damaged credit situation.Here is a quick rundown of what file segregation is and how it will work so that way you know how to watch out for it. First they send out letters to those who have recently completed a bankruptcy, these letters will explain that because of their bankruptcy they are unable to get a credit card, loan, etc. for at least 10 years. To keep that from happening to the agency that sent you the letter will require a fee and thus will create a whole new identity for you.
The next thing that they will do is direct you over to apply for a Employer Identification Number from the Internal Revenue Service. Now while what you receive looks very closely to a Social Security number it will not be. They then will direct you to use it as Social Security when applying for a credit card or loan. This is obviously a major crime and can cause some very serious issues for you, so you will definitely want to avoid this at all costs. Even worse you will have paid that company to be told to commit a crime.