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.
Step 1: Look For Companies That Don’t Make 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.
Step 2: Look For A Company That Educates Their Clients
A legitimate credit repair company like Lexington Law 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.
Step 3: Look For Credit Repair Companies That Do Not Make You Pay Up-Front
Legitimate credit repair companies will wait until after their services have been performed to request payment. Companies that request payment up-front are most likely scams.
Step 4: 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.
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.