Rising Interest In Credit Scores
Today, a credit record is more than a dry report on how many credit cards you have and whether you made every auto-payment on time. Credit recording agencies often distill consumers' reports into a three-digit number called a credit score -- and that number alone can determine whether you get easy monthly payments or loan-shark rates. It's not surprising that as credit scores become more important, consumers are taking more interest in these three-digit numbers. A high score saves you money, a low score costs you. This fascination with credit scores has led to more interest in repairing credit to increase scores.
Unfortunately, as the demand for credit repair rises, the opportunity for scams becomes more prevalent, says Marta Moakley, an assistant attorney general in Florida.
"As our economy becomes sluggish and debt levels rise, more people turn to companies that specialize in credit repair for help. Consumers need to be aware that there is potential for fraud."
The need for such a service is obvious. Every consumer has inaccurate or outdated information on a credit report from one of the three major credit bureaus, says Steve Rhode, President, and Co-Founder of Myvesta.org, a nonprofit agency that counsels people in financial crisis.
These errors can be costly, and it's up to the consumer to get them corrected. The credit bureaus are not obligated to root out errors and provide accurate information. Their job is to record the information presented to them by creditors.