Beware of Credit Repair

credit repair scam

With the growing demands of needing good credit scores, more and more credit repair companies are opening doors across the United States. Unfortunately, many of these new companies are scam artists just trying to take your identity or your money.

They claim to “Erase bad credit, 100% guaranteed” or even “Create a new identity, legally”. The fact is there are no quick fixes for your credit.

7 Signs To Watch Out For

  1.  The company does not tell you your rights and what you can do for yourself for free.

  2.  The company suggests that you try to invent a “NEW” credit identity and then, a new credit report. They will advise you to apply for an Employer Identification Number to use instead of your Social Security Number. This could end up putting you in some serious legal issues.

  3.  If they ask you to sign blank forms, NEVER sign blank paperwork.

  4.  They tell you, you can improve your credit score by piggybacking on someone else’s credit. This can be very bad, you are exchanging your personal information with a complete stranger.

  5.  The company advises you to dispute all the information in your credit report, regardless of its accuracy.

  6.  Companies will request an up-front fee before any type of credit repair has been performed, as outlined in CROA. Credit Repair Organization Act.

  7.  Watch out for law firms claiming to do credit repair. The fact is not one letter they send out on your behalf actually leaves the office on law firm letterhead with the attorney’s signature. You never actually speak with the attorney or even the attorney’s paralegal. So are you really paying for actual legal representation or just another credit repair company?

Just because you have poor credit does not mean that you can’t get credit. There are numerous ways to reestablish your credit legally and without becoming a victim. There are several legit credit counseling services out there that are legitimate and can assist you in creating goals and sticking to them. Just remember the 7 signs to watch out for when seeking assistance.