Avoiding Credit Repair Scams

You Want to Avoid Credit Repair Scams

Bad Credit

There is always a risk when choosing a credit repair service. Falling for credit repair scams is emotionally devastating, time consuming, and expensive. Your credit score is crucial because it determines how much you pay for things like insurance, mortgages, and affects the likelihood that you can be approved for a loan. If you have found yourself in a situation where your credit score is low and less than desirable, there are companies that can help you rebuild your score. However, be careful which one you choose. There are companies that look for innocent people looking for credit repair guidance and those are scams. Read on to learn about the four steps to take to avoid credit repair scams.

Look For Outrageous Claims

Take caution of companies that are claiming that they can erase negative information on your credit report and that they restore your credit immediately. Negative information cannot be erased quickly. If you believe that a negative error is on your credit report, there is a process that goes along with it. However if it is accurate, it has to stay on your credit report for a certain about of time. Stay away from the companies that promise you unrealistic things, this way you can avoid falling from a credit repair scam.

Look For Client Education

A legitimate credit repair company aims to educate their clients on every aspect of credit repair and their personal credit reports. It is possibly to repair your credit on your own, but it is a difficult thing to do. Credit repair companies can guide you through the process and makes it easier to achieve your goals. IF a company tells you not to contact the major credit reporting companies directly or that it is impossible for you to fix your credit on your own, it is probably a scam.  We offer companies who are very experienced, take a look at Lexington Law Reviews for more information.

Look For Unreasonable Fees

Many credit repair companies will charge you an extreme amount of money for a setup fee and also for monthly fees. Make sure you shop around to get a feel for what a fair price to pay is.

Make Sure They Want to Fix the Problem

Look For Credit Repair Companies That Encourage You To Work On Improving Your Credit Score Rather Than Attempting To Change Your Credit Identity. Many illegitimate credit repair companies try to convince their clients to create a new credit identity by applying for an employer identification number to use instead of a Social Security Number. Doing this can be considered fraudulent.

Avoiding Credit Repair Scams

If you find yourself needing to repair your credit score, do not fall for a credit report scam. Be familiar with your rights, know exactly what your credit score is, and educate yourself on the factors of lowering your credit score. Go to a professional for advice, who is knowledgeable in FTC guidelines, and works to navigate the credit repair process. Search for the organizations that provide credit repair counseling for free.