Credit Repair Scams Alert: How to Improve Your Credit and Stay Safe.
Having excellent credit, if you don’t know already, makes a world of difference in your life, from the age of 18 until you no longer need loans or credit cards. Which is why some shady businesses and con artists like credit repairs scams.
As too many people have experienced, it’s easy to get in trouble with credit card and loan debt quickly resulting in a bad credit score that follows you for years.
On the other hand, recovering from a bad credit score and achieving an excellent credit score isn’t as impossible as you think. Fact is, most of us aren’t aware of what’s involved.
For insights on achieving a great credit score and avoiding scams and fraud, listen to this episode on the Easy Prey podcast, hosted by Chris Parker, CEO of WhatIsMyIPAddress.com
Millions of people that have credit problems may begin looking for ways to get out of their mess and improve their situation.
When they do, they’re become vulnerable to another credit problem—running into credit repair scams and getting swindled out of hundreds of dollars to unscrupulous, so-called credit repair companies.
The problem starts with not knowing what “credit repair” means.
Credit repair scams (and services), defined.
A credit repair company is not in the business of reviving, improving or boosting your credit score. While your credit score might improve a bit with the help of a credit repair company, that’s not their goal.
So, what do they do instead?
A credit repair company focuses solely on helping you remove errors from you credit reports with the three major credit agencies: Equifax, Experian and TransUnion.
Are there errors on your credit report?
You definitely should know! If there are errors on your credit report, they might be hurting your credit score and your ability to get a good rate on a loan or credit card.
Do you need a credit repair company to remove errors from your credit reports?
Not at all!
It’s something that YOU ARE allowed to do—and in fact, you should do it as soon as you can.
You probably don’t need a credit repair company.
In an article that looked at credit repair companies by debt.org, they said:
That’s accurate advice, but it’s not helpful, if you think about it.
- It makes you wonder if your credit report is riddled with errors, without mentioning what the likelihood of that is.
- You still don’t know how an error landed on your report.
- Truth is, you could investigate those errors yourself with the three credit bureaus, for free.
- Last, but not least, it doesn’t mention that there are credit repair organizations that aren’t reputable and will take you for a few hundred dollars and promise to do things they’re not able to (or don’t) do.
It’s important to know there ARE legitimate credit repair companies out there. What’s more, must follow government rules that help protect consumers.
It is also very important to know there are disreputable and even fake organizations that call themselves “credit repair” companies who are only looking out for their best interests, which they do by swindling people who were hoping for credit relief.
Those are the organizations that you want to avoid the most.
How to Avoid Credit Repair Scams
A reputable credit repair firm should never suggest the following actions on your part. Here are the red flags to avoid:
- They say they’ll remove all negative information from your official credit reports. That’s a red flag because negative information (if it’s accurate) isn’t able to be “removed” by anyone.
- They’ll encourage you to dispute multiple items on your credit report. That’s poor advice and could lead to credit fraud charges against you.
- There’s a fee they request to get started, along with monthly charges. According to regulations under the Federal Credit Repair Organizations Act, a credit repair firm can only collect fees once they accomplished what they claimed they could do.
- A credit repair company reaches out to you to help. Don’t click on any emails and links from someone saying they can fix your credit problems. Instead, if you decide you want assistance start by looking for credit counseling services…some are free of charge.
Having excellent credit makes a world of difference in your life. For some, credit repair can help you get started in the right direction. The Easy Prey podcast is designed to help you stay informed, avoid scams and fraud, and keep you safer online and in real life.
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