Credit Report Scams And How To Avoid Them

In the event you need to repair your credit score, there are many companies claiming they can do this for you while trying to lure you in with false claims such as “legal”, “quick repair” and “guaranteed credit repair”. These services prey on people who are unable to obtain credit due to a bad score or are desperate to get credit after a bad situation.

This article is designed to guide you on how to spot scammers and fake companies who cannot help and might make your situation worse.

The first thing you should do when trying to repair your credit file is to obtain a copy of your credit report. Multiple companies provide this information but remember, only you should obtain this information, no one else. Any company that is offering to get your credit report on your behalf should be avoided.

Below is information that you should remember when dealing with as credit repair company

  • When legitimate credit repair companies are helping you to fix your report, they should provide you with a copy of the “Consumer Credit File Rights Under State and Federal Law”. This document informs you of your right to obtain your credit report and dispute any inaccurate information on your report.
  • If you are asked to pay for the services before the company has started them. It is against the law for credit repair companies to make you pay upfront.
  • If the companies claim to remove information, that is accurate from your credit file. For example, if you genuine made a late payment this information is correct and cannot be deleted. Companies which claim to do this may be using shady methods to eliminate this information.
  • Any company asking you to create a new identity or to do so on your behalf to obtain and new SSN or EIN. This is highly illegal.
  • If the company doesn’t give you a copy of the contract before you sign it, this could be a sign of a scam. Any document you are required to sign should be shown to you before you sign it so you can view the information. Do not pay for any services before you are acutely aware of what you’re signing up to.

Be aware If the contract doesn’t contain:

  • All details of what the company is going to do for you.
  • When the services the company will perform.
  • The name, address and company number of the company.
  • The amount of money you will be charged.
  • Make you aware you can cancel the contract within three days.

There are some companies out there which genuinely can help you to repair your credit report but unfortunately due to the industry being overrun with scammers every company you approach should be meet with 100% scepticism and keep a lookout for the points mentioned above.

Any company claiming to help you before knowing your history is probably a scammer. All legitimate companies will need to know about your credit history before being able to help you. They will probably need to see your credit reports before outlining how they can help.

Everything a credit repair company will do, you can do yourself. It’s the company’s legal responsibility to ensure you are made aware of this. Any company that will not explain this or the methods they use should be avoided

It’s impossible for any credit repair company to get you to a particular score or tell you how much your score will be improved by using their services. Companies can give you examples from past customers and what happened with them, but each case is individual.

If the company is doing this or sounds too go to be true, stop and start looking for another company. Do research about each company before you approached. You will often find plenty of reviews on the company’s and avoid any with lots of negative reviews.