No quick fix for bad credit reports
In a pandemic, when loss of income is common, many people turn to credit to help pay the bills or make needed purchases.
Because credit is so critical right now, consumers are also turning to credit repair scams in well-intentioned yet misplaced efforts to “fix” bad credit, or to improve their scores in order to gain access to more credit. “Consumer Man” Herb Weisbaum recently wrote about these scams, in which fraudulent companies make promises that no one can keep–such as dramatically improving credit scores by removing accurate negative items or “hard inquiries” (which occur when you apply for a loan) from credit reports. In reality, accurate items on your credit report can’t simply be wiped away.
You need to put in the work to improve your score, mainly by paying your debts on time, every time, and by using 20 percent or less of your credit lines, or at least not maxing your cards out. The good news? Anyone can get free financial advice from certified counselors and coaches right now, including a plan for how to diligently dig themselves out of even the deepest debt.
(Source: Scam Gram, a Consumer Action news alert, February 2021)