How To Avoid Credit Repair Scams

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If you've spent any amount of time online, use email or even watch television, you've seen the advertisements for credit repair services. Many are legitimate companies simply competing for business, but some are individuals and companies focused on separating you from your money with no real intention of providing value or results.

Here are a few of the tell-tale signs:

  • "We can erase your bad credit — 100% guaranteed."
  • "Create a new credit identity — legally."
  • "Buy our good credit trade lines and improve your scores instantly."

The Federal Trade Commission (FTC) says do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those kind of claims. The fact is you can improve your credit report legitimately, but it can take time, a conscious effort, and a proven effective process.

Recognizing a Credit Repair Scam

Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance or even a job once they pay them to repair their credit. The truth is most of these companies can’t deliver an improved credit report for you using the tactics they promote. Many of their claims are illegal. So after you pay them hundreds or thousands of dollars in fees, you’re often left with the same credit report but someone else has your money.

Here are a few tips to determine if a credit repair offer may be one to steer clear of:

  • They want you to pay for credit repair before they actually do any credit repair. Under the Credit Repair Organizations Act (CROA), credit repair companies cannot require you to pay until they have completed the services they have promised.
  • They tell you that they have a secret "in" with the credit bureaus.
  • They tell you that for a fee you can buy someones else's good credit tradelines.
  • They tell you they can "guarantee" to get rid of most or all the negative credit information in your credit report.
  • They suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number. If you follow illegal advice and commit fraud, you may find yourself in legal trouble, too: It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.

All the above tactics are commonly used by unscrupulous credit repair hucksters. If you come across this type of individual or business, it is our advice to keep your money.

Your Rights Regarding Credit Repair

When it comes to the legalities of credit repair, the law clearly allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Some people hire a company to investigate on their behalf, but anything a credit repair company can do legally, you can do for yourself at little or no cost. The problem that most who attempt credit disputing on their own behalf run into is that they start taking action before they really know what they are doing.

With credit repair you can actually do more damage than good if you attempt it on your own without fully understanding the way the system works. It is always our advice to gain the expert knowledge you need before you take any action.

Helping Yourself

The best course of action when it comes to repairing your damaged credit is to educate yourself and become empowered with the knowledge to do it effectively on your own. You not only safe a great deal of money, but you can also accomplish so much more in a shorter period of time.

You might think that reading up on the topic online is the best way to get the straight info. That can be a recipe for disaster. There is so much misinformation online about credit repair that you will have a difficult time knowing who to take advice from. It is this exact reason that we created MyCreditRepairUniversity.

Do yourself a favor and take a look at our proven do it yourself credit repair system.

Still Confused?...

Click here and get your copy of our eye-opening special report that gives you a behind the scenes look at what really goes on at these credit repair firms.