There are plenty of constructive ways to rebuild your credit after you've filed for bankruptcy in Modesto. You can apply for secured credit cards and loans or you can "piggybank" on another authorized credit account to show creditors that you can make responsible financial decisions. However, there are unscrupulous companies out there looking to make quick money by taking advantage of people who are looking to rebuild their credit fast.
You need a good credit rating in order to get a car, a home or even a job, so many people are anxious to raise their FICO score immediately after filling for bankruptcy. They are drawn in by ads claiming to "fix credit fast" or "boost your credit score overnight." However, many of these claims are unsubstantiated or simply completely false. According to Fraud.org, a consumer resource website, here are some common scams people fall for when trying to rebuild their credit:
Paying for "credit repair services" upfront. It's actually illegal for a company to ask for payment prior to performing credit repair services.
Believing that a company can eliminate late/missed payments or charge-offs from your credit history. NO company can legally remove negative credit information if it is accurate, not even for a fee.
Promises to create a second credit history. This is strictly illegal in every way. Anyone offering a secondary credit score using a tax ID number or social security number other than your own is fraudulent.
If you want to clean up your credit fast, regardless of whether you've filed for bankruptcy or not, you can correct your credit report yourself. You don't need to hire a company to take off blemishes for you. All you have to do is obtain a free credit report (the government mandates that this be available for every American once a year), identify the mistakes in your credit history and contact each related creditor personally to have them removed when possible.
Most people suffer with bad credit because they simply don't know that they have mistakes on their credit histories. Check your credit score annually (at least) and take care of problems as soon as you notice them. If you want legitimate answers to your financial questions about credit and bankruptcy, contact a qualified lawyer you can trust.
