Credit repair and other companies often claim they "guarantee" to get you a credit card, regardless of your credit history. In fact, these companies do not always honor their guarantees. Sometimes, they'll just take your money and run—you will not get any credit, regardless of what they promised.
If they get you a card at all it often will be a "secured" bank credit card with high up-front "application" fees that requires you to deposit and keep several hundred dollars in a savings account, or a card that only allows you to buy items in a catalogue from a business that you probably never heard of. You can apply for a secured credit card by yourself. To find banks that do not charge application fees for secured cards, check the BankRate web site (www.bankrate.com).
Credit repair companies often advertise on television, in newspapers and even on match-books. Sometimes they require consumers to dial a "900" telephone number to get more information. Calls to 900 numbers cost several dollars per minute, so listening to a few minutes of information about the cards will result in a hefty charge on your phone bill.
Some companies try to get people a credit card by having them apply using financial information of other people with good credit histories. It is a criminal act to apply for credit under someone else's name—do not do business with these companies.
Law enforcement agencies have shut down many credit repair outfits, but it is hard to stop a fraudulent credit repair business unless people complain about it. Therefore, be careful about responding to credit repair ads and be sure to complain to the agencies listed below if you think a credit repair company took advantage of you or if you see suspicious ads or web sites offering to fix your credit.
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Credit repair and other companies often claim they "guarantee" to get you a credit card, regardless of your credit history. In fact, these companies do not always honor their guarantees. Sometimes, they'll just take your money and run—you will not get any credit, regardless of what they promised.
If they get you a card at all it often will be a "secured" bank credit card with high up-front "application" fees that requires you to deposit and keep several hundred dollars in a savings account, or a card that only allows you to buy items in a catalogue from a business that you probably never heard of. You can apply for a secured credit card by yourself. To find banks that do not charge application fees for secured cards, check the BankRate web site (www.bankrate.com).
Credit repair companies often advertise on television, in newspapers and even on match-books. Sometimes they require consumers to dial a "900" telephone number to get more information. Calls to 900 numbers cost several dollars per minute, so listening to a few minutes of information about the cards will result in a hefty charge on your phone bill.
Some companies try to get people a credit card by having them apply using financial information of other people with good credit histories. It is a criminal act to apply for credit under someone else's name—do not do business with these companies.
Law enforcement agencies have shut down many credit repair outfits, but it is hard to stop a fraudulent credit repair business unless people complain about it. Therefore, be careful about responding to credit repair ads and be sure to complain to the agencies listed below if you think a credit repair company took advantage of you or if you see suspicious ads or web sites offering to fix your credit.