Credit Repair Companies – Know the Sure Signs of Scams

Chances are that you’ve seen the commercials for credit repair that claim to solve your credit woes. These scam companies prey on the desperation of those who want to repair their credit history, so they engage in many deceitful tactics to gain your business. To build a sense of legitimacy, they might use testimonials from “satisfied” customers who, in reality, don’t even exist.

When you’re desperate for a solution, it might be easy to give them the benefit of the doubt, but before you fall prey to a credit repair scam, it’s crucial that you check out each company for the warning signs of fraud first.

First and foremost, the best thing you can do for your credit is repair it yourself. Credit repair scams can be costly, and they can incur legal fees along the way if you find yourself in trouble with the law. You are ultimately responsible for your credit history, so it’s best not to put it in the hands of credit repair companies. When these companies resort to illegal measures, they are experts at finding ways around the law, but you might find yourself facing prosecution for federal crimes if you’re not informed of the ways that they can scam you.

When a credit company tells you that you have unrealistic purchasing power with bad credit, be wary of their motives. If they tell you that you can get loans for a car or a mortgage, find out exactly how they plan to go about helping you do that.

If a credit repair company demands upfront payment, chances are that they are a scam operation. Also, you are always entitled to know your rights, so when a credit repair company withholds any vital information, it’s a sure sign of a scam.

Some credit repair tactics can get you in deep legal trouble. Some of the measures that these companies make their customers take constitute federal offenses, so educate yourself before you move forward with any of these companies. One example of this is a company telling you to get in touch with a credit reporting agency yourself. They might even tell you that you need to establish a new credit identity. No legitimate credit repair agency will tell you that you need an “employer identification number”; your social security number will work just fine. This is one tactic that credit repair scammers use to circumvent the law, but it can lead to dire consequences for you.

Fortunately, these warning signs will usually surface early on, so once you receive any indication that they’re using less-than-legal tactics to conduct business, just walk away and remember that you can most effectively repair your credit on your own.

The key to credit repair is taking a proactive approach with your credit history. If you know that you’ve had bad credit in the past, review your credit report occasionally. By keeping an eye on your credit history, you can also protect yourself from identity theft and give yourself peace of mind in the security of your financial future.