If you are on the hunt for ways to improve your credit, be very careful of credit repair scams. Anyone that makes big promises about erasing your debt or any guarantees of quickly improving your score… be wary. In the world of credit and debt, if something seems too good to be true, it most likely is. Debt reduction and credit repair take dedication and hard work. There are no quick fixes.
The Federal Trade Commission monitors and regulates the credit repair businesses. Due to good consumer watchdogs, many have been shut down. Still, it pays to be very careful… as these companies prey on your desire to improve your financial situation. Often they realize you may be desperate, so they work on that fear.
If you are in the market for a credit repair company, check out these tips.
1. You are not required to pay anyone for a service they have not yet performed, especially if they are a credit repair company. Be concerned if they ask for a large deposit upfront.
2. Be sure to read all the fine print of any documentation or contracts they send you. In addition, also ensure there is a contract.
3. If they will be collecting money from you to pay off creditors (a common practice), make sure you understand exactly where the money goes and what percentage of your payment is paid to the repair company.
4. Be wary if the company promises to have true but negative reports removed from your credit history before seven years. If the reports are negative but accurate, they cannot be removed.
5. Verify the company has an actual address and phone number.
6. Check their name out with a Google web search.
7. Ensure they have a good report with the Better Business Bureau.
Overall, the key is to trust your instincts. Desperate, debt-ridden people are easy targets for fraud. If something feels wrong, stay away. Don’t let your bad situation get even worse!
Related Articles:
*The Effects of Debt on Credit
*Do you Need Credit Counseling?