When it comes to repairing your credit, it is important to be aware of the potential scams that are out there. By following a few simple tips, you can avoid becoming a victim of a credit repair scam.
Research your options: There are a number of reputable credit repair companies out there. Do your homework and research each one before you make a decision.
Don’t get involved in anything that could get you arrested. The Internet is rife with many scams that will have you paying for services that are totally illegal and won’t help.
Don’t do business with a credit repair agency that assures your credit report. A lot of these companies will make general claims about what they can do in order to clean up your credit. This isn’t accurate since what’s affecting your credit report is affected to how another person with credit issues. To claim they can clear your credit completely is definitely a fraud and they are most likely committing fraud.
Be wary of promises: Be wary of any company that promises to “fix” your credit. No one can guarantee results. When you’re thinking about fixing your credit report, always consider if you could use outside help. If you can’t find expert help in your area, look at the Internet. Be aware, however, that many scams exist online.
Get everything in writing: Before you sign up with a credit repair company, make sure you get everything in writing. This includes the services they will provide and the fees they will charge.
Check for hidden fees: Some help repair credit will charge hidden fees. Be sure to ask about any potential fees before you sign up. Never hire a credit repair company that asks for up front payments. Many companies will try to make a cover charge to fix your credit. You will find many fees associated with companies, some charge before they do any work, and some will guarantee results for a fee. Only choose a company that will show you proof of actual results before asking for payment.
Don’t give up your personal information: Be careful about giving out your personal information, such as your Social Security number, to a credit repair company. There are a lot of scams out there and you don’t want to start working with one before doing more research. Check the BBB website and look for reviews available elsewhere on the Internet to find out if you can trust the company.
Know your rights: You have certain rights under the Credit Repair Organizations Act. Be sure to familiarize yourself with these rights before you sign up with a credit repair company. You have the right to cancel your contract with any credit repair company for any reason within three days from the date you signed the contract. You have the right to know what you need to do to improve your credit record.