Credit score is important to almost everyone. It's a measure of your trustworthiness (at least in the eyes of financial institutions) when it comes to financial matters. So, keeping that score at highest number possible is pretty important to most of us. Unfortunately, sometimes no matter how hard you try, your credit score takes a hit. You lose your job and fail to pay your car or house payment, you forget to pay your bill or end up being late or what have you. Such misfortunes can cause your credit score to take a dive.
So, what do you do when that happens? Obviously you try to fix the problem. And one of the popular ways to get one's credit back on track is hiring a credit repair company. Unfortunately, credit repair industry, like most other industries, is filled with scammers waiting to take advantage of you. Thousands of people fall victim to credit repair scams every year. Thankfully there are a few things you can do to avoid becoming one. Like most other scams, credit repair scams also have some distinct signs. To avoid becoming a credit repair scam victim, you need to spot those signs. Here are 4 ways you can spot credit repair scams:
Claiming guaranteed results
This is a common sign of scam, not only in credit repair industry, but in any industry. Stay away from credit repair companies that promise guaranteed work, telling you they will easily get rid of any and all negative info on your credit report even if those negative information are correct. If it's too good to be true, it probably is!
Asking for payment before even starting the work
This is another scam tactic used by scammers in many different sectors. Do you pay up front when you take your car to the shop or do you pay when the work is done? Then why should you pay a company upfront before they even start working on repairing your credit?
Offering you illegal tactics
There are companies who will tell you that they will improve your credit rating by getting rid of your old identity and giving you a totally new one. That means they will acquire a new Social Security number for you. I don't have to tell you that getting a new SSN is against the law and it could get you in a lot of trouble including but not limited to prison time and big fees.
When it comes to repairing your credit, going to illegal route is the last thing you wanna do. It's just not the right thing to do, never mind the fact that at the end you will end up hurting your credit and your reputation dramatically.
Pretending to be a Government agency
Lets get this straight, the government never was, is and probably never will be in the credit repair business. Unfortunately, many people don't know this simple fact and fall victim to companies who introduce themselves as a government-based program. Historically, people tend to trust government agencies and programs, so scammers use this trust to make people feel safe and secure in that they are dealing with a government agency and not scammers.
If you ever get an e-mail or a phone call from a company claiming to be part of a government credit repair program, know that it is a scam.
What to do If you have been scammed by a credit repair company?
I hope the above tips will help you spot credit repair scams and save yourself a lot of time, money and disappointment. But if you have already fallen victim of a credit repair scam, there are a few things you can do.
Ask for a full refund if the company couldn't deliver on what it had promised you. Make sure to keep all of the necessary documents and keep your complains in writing as it will be a crucial help in the next step assuming the company doesn't give you a refund.
If your conversation with the company doesn't produce any results, the best thing you can do is to report them to Federal Trade Commission, your state attorney general and also to the Better Business Bureau. Not only it will help you, it will also sound the alarm for others who may want to deal with the company in the future.
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