Credit Counseling/ Consumer Credit Counseling

As Americans try and grapple with the relatively new idea of instant credit (credit cards) there are many questions and nuances that need to be addressed. Too many people have gotten into hot water due to mismanaged credit.

As a result numerous services have sprung up, especially on the Internet, that offer quick and easy credit counseling. Quick and easy eh? Sounds great eh? Obviously it is too good to be true.

You often see advertisements from credit counseling companies that proclaim the ay can:

• Erase your bad credit
• Create new credit identity
• Change your credit history

All of these things are impossible. Only you can do them, and then, only over a long period of time, and with lots of patience and restraint.

These companies prey on people desperate to relieve the burden of bad credit and they know that from this desperation they can extort large up front payments from people. This is how they make their money, not through benevolence.

• So, watch out for companies who claim that:
• Want you to pay for their service, before any is provided.
• Do not tell you what you can easily do on your own.
• Tell you that you can create a new identity that will have better credit. They may suggest that you apply for an employee identification number instead of a social security number. This is fraudulent and it could land your butt in jail.
• If you apply for this false information via the mail or the phone you could be guilty of mail and phone fraud.

The truth is that nobody can remove any information on your credit report. It is all held by the three major credit bureaus. These are: Equifax, Trans Union and Experian.

If you are denied credit, you can always ask for a free credit report. This is your right, and you do not need to pay some faulty credit counseling service for the information. Once you have your credit report, you bank will probably have a credit counseling service that is inexpensive or even free of charge. They will tell you the best way to get out of your mess. Without changing your identity.