With the constant amount of advertisements on how credit repair services can help people with bad credit, many of them are pure scams that will cause you more damage to your credit.
Many say they will fix your credit and improve your credit score drastically, but in most cases, this cannot be done legally. Anyone with a low credit score knows that having bad credit will lead to higher interest rates. This will also mean expensive deposits for apartments, utilities, purchases and insurance rates.
Here’s how a credit repair service can improve your credit and how to avoid scams.
If the credit company wants you to make your payment before they provide service, consider this as a major red flag. Companies will provide structured monthly payment plans that will allow you to receive service firsthand. According to the Credit Repair Organizations Act, the company must not receive or requests fees until after the credit report that generated over six months of results.
You also have cancellation rights that you can withdraw from at any time without fees or penalty.
Too many promises
If the company promises that they can get rid of negative credit on your credit report for a short period, this is a sign that you should run away from. There are no guarantees that your credit score can improve quickly.
They are unable to answer smart questions
If the company support is not able to explain their specifics of the services they offer or even the total cost, this means you are heading for a scam. Ask questions that will help you determine who you are dealing with as a reputable organization will be able to guide you from start to finish.
They ask you to use false information
If the company suggests that you invent a new credit identity, this will lead to a new credit card report. This means that you must apply for an employer identification number rather than the actual social security number. Don’t do it.
Follow this guide to help you avoid the risk of scams from a credit repair service. Comment below and share your tips with us!