In today’s world of easy credit and consumer choice, bad credit and heavy debts are not uncommon. For many people, debt and credit problems go too far to be manageable. If you are looking for help with these problems, beware of several common credit-fix scams. First, you need to understand that if there are errors on your credit report, such as debts that aren’t yours, you can fix these errors yourself and for free. But, if your report is correct and simply contains information that you wish wasn’t yours, there isn’t a lot you can do. Creditors can keep debts on your credit report for seven years, and there is no magic spell that will make them go away. Keeping that in mind, watch out for the following, as presented recently by Bankrate.com:

We speak the credit bureaus’ language or know some secret regulation that can make unappealing items on your credit report vanish. Remember that there is no such thing as a secret formula that can make correct but unappealing citations on your report go away. Some companies offering these services will just take your money and disappear. Others will bombard credit bureaus with frivolous disputes, and while these items are under investigation, they may temporarily be omitted from your report, after which they will return. The company, however, will show you your miraculously “clean” report and collect its fee. Also, keep in mind that the Credit Repair Organizations Act forbids any company from accepting money until after it does what it has promised, says Susan Grant, director of the National Fraud Information Center. Remember that scams will usually ask for money upfront.

We’ll convince the creditor that you don’t really owe the debt. This works similarly to the first scam. Companies will concoct a scheme for you to challenge the debt or will claim that they will issue a deluge of procedural requests that will persuade the creditor to drop the claim.“Federal agencies have described these schemes as bogus,” says Deanne Loonin, staff attorney with the National Consumer Law Center. If you believe that you may actually have a defense with regard to a debt, you should consult a lawyer.

We will get you a brand-new, clean credit file. Remember that this is always illegal. Companies may try to persuade you to apply for a new taxpayer identification number or employer identification number for the purposes of building a new credit history. This is a felony. Be especially vigilant of this one, because you may not realize what you are being asked to do because part of the con is not to explain the entire scheme. Besides being illegal, the “new” credit report would still list your name and address, which would still be connected to your old debts.

Call our 900 number for details on our credit-fix strategies. This can be combined with any scam, and more than likely, the con artists will try to keep you on the phone as long as possible, extending huge per-minute charges.

We’ll clean your credit fast and use our contacts to get you a credit card, mortgage or loan. This is a newer scam, and one of the most costly. Consumers who really need money or loans are especially susceptible to this, and can be persuaded to pay huge amounts to the scam. Some companies mimic credit-counseling agencies or mortgage companies, and will hit you up again and again, until you have nothing left. Since there are legitimate non-profit groups that help educate consumers with regard to their credit, it is best to keep a tight hold on your wallet and be wary of any quick-fixes or big promises. A little reference-checking on the Internet should quickly reveal the legitimacy of any companies. Generally, be wary of companies that initiate contact, outrageous promises or huge fees. You should also be careful of two common mistakes that are not scams, but are costly. Refinancing your home to pay off credit cards is a bad idea since your home is now on the line. Also, since you are entitled to free copies of each of your credit reports annually, be careful of companies that ask you to pay for them.

Coming up with a down payment can certainly be the hardest part about being able to afford a new house, especially if this is your first home. However, there are more than just a couple of ways you can do this. We’ll take you through the top 10 ways according to MSN.com that will enable you to come up with that down payment! Ask for help. Parents, friends and relatives may all be willing to give you a loan with favorable rates – with parents, that often means no interest rate, and no strict timeframe. If a loan (or gift) doesn’t seem feasible, maybe they would be willing to co-sign the loan. Use your other assets – either by selling them, or by borrowing money against them. This can include things like cars, boats or bicycles, as well as stocks, or trinkets, such as heirlooms, or vintage trading cards. If you have life insurance with any built-up value, you could cash in that value, or possibly borrow against it. If you are a first-time homebuyer, you can take out $10,000 from your IRA, penalty-free, to put toward your home purchase. You can also borrow against your retirement funds. Sometimes, you can get help from a non-profit organization, such as a church. There are loans out there that will let you put a lower down payment down, as long as a non-profit organization puts in part. Increase your income – you can do this by getting a second job, or doing some freelance work. If you can make it work, change your withholding taxes in anticipation of being able to deduct the interest. This will give you more take-home pay, which you can start saving! Offer to give something other than cash for the down-payment. This could include offering the seller something like a car or a boat in lieu of the down payment, or it could be your services; for example, you could offer to do landscaping in the person’s new home, or give them automobile services, or do their taxes! Finally, you can look for options that don’t require a large down payment. Such options include loan programs such as VA or FHA. Another option is to purchase a foreclosure property, which can often be had with little or no down payment. You can also consider getting an 80:20 loan, where you essentially have two loans; one is the regular mortgage on the property, and the other is a loan for the down payment – even through these are separate loans, they often come from the same lender.

The new Consumer Financial Protection Bureau Rule:

Only three Changes require the new 3 day rule.

1. The annual percentage rate increases by more than 1/8 of a percentage for fixed rate loans or 1/4 of a percentage for adjustable rate loans. A decrease in annual percentage rate will not require a 3 day review if it is based on changes to interest rate or other fees.

2. A prepayment penalty is added, making it expensive to refinance or sell.

3. The loan product changes in anyway, such as a loan with interest only payments or a switch from fixed rate to adjustable rate mortgage.

The new rule is geared toward changes in the loan, not changes with fees such as commisssions, prorations, taxes or amounts paid into escrow. 

August numbers are out and the Median Price increased from 214,000 in 2014 to 225,000 for 2015