If you’ve a bad credit history and your credit report isn’t looking good you’re going to want to do anything you can to repair it. Unfortunately there are unscrupulous companies out there waiting to take advantage of your bad credit, turning it into a profit for them. There are lots of companies advertising their services as ‘credit repair services’ or offering a ‘credit cleaner’ service, but beware as picking the wrong company to turn to can often do more harm than good.
Before we look at how to spot credit repair scams I must point out that there are also good companies out there who will genuinely help you help yourself; walk you through the minefield of financial jargon and stop you falling into any of the many pitfalls you face. And whilst these legitimate companies will still charge a fee, they will ensure that you get the best possible long term outcome for your finances.
Let’s look at some of the practices that less than scrupulous companies will use.
Making Promises that are too good to be true
If a company is offering something that sounds too good to be true, then it probably is. This is especially true when a company offers to ‘erase your bad debts for ever’ your credit record as long as factually correct cannot be amended to change the facts, you can request a note is put on file if there is something that you feel warrants further explanation; but facts are facts and they can’t be erased.
Asking for money up-front
You should also be wary if a company wants you to pay for credit repair before they have provided any services, they should carry out the services offered before asking you for payment.
Not telling you how you can help yourself
A good company should tell you what you can do to help yourself for free, there are steps that you can take that will not cost anything and can make a difference to your credit report and they should inform you what they are. Of course you may want to use their paid services as well but they shouldn’t be charging you for what you could easily do yourself.
Suggesting you do something that could illegal
This could be amongst the worst thing that unscrupulous companies do and can include things like disputing accurate information on your credit report, adding or removing addresses or even we have heard of suggestions that you reinvent yourself with a ‘new credit identity’. If you do something illegal then you of course won’t only not improve your credit rating but find yourself in a whole heap of other trouble too.
So when looking for help with repairing damage to your credit report be careful that you don’t fall prey to one of the may credit cleaner scams out there. And remember that there are companies out there who can legitimately help you, without ripping you off, whilst staying on the right side of the law.