Credit Repair Company - 3 Ways To Avoid Scams
You may be surprised to find errors, a black mark or two, and mistakes in your credit report if it's been a while since you've looked at it. Helping you fix those mistakes is a credit repair company and they can also erase those black marks. Watch out for scammers, though, and choose a reputable Credit Repair Company with these tips:
Paying anything upfront is a no-no
If the credit repair company wants you to pay a fee before they meet with you then avoid them. Before asking for any type of payment for their services, a reputable company will talk to you first, assess your credit report, and discuss your current situation. An up-front fee is a red flag that the company will probably take your money and run. Any type of charges you may incur should not be exorbitant and this is something you need to make sure of. If a $1000 is what your case will cost in a particular credit repair company, then you should look for another one.
Keep an eye out for re-inventors
Some companies will tell you that you can wipe your credit slate clean by "re-inventing" yourself with a new social security number. This isn't true. In most cases, what they plan to do is get you a new credit report by applying for an Employee Identification Number (EIN)--used by businesses--which resembles a social security number, and you're told to use it as such. But this practice, known as "file segregation," is a scam, and it's also illegal! Avoid any Credit Repair Company that suggests this practice.
Look for the helpful one that in which you can also help yourself
With a good credit repair company, they will tell you, for free, what you can do for yourself such as contacting credit reporting bureaus about errors and writing letters to creditors. If a credit repair company suggests something illegal or unethical like disputing a legitimate charge or fee on your credit report, then they should be avoided.
Before signing up with any Credit Repair Company, make sure you check with the Better Business Bureau. This way, you can avoid rip-off artists and scammers because they'll have records of any formal complaints against the company.
Paying anything upfront is a no-no
If the credit repair company wants you to pay a fee before they meet with you then avoid them. Before asking for any type of payment for their services, a reputable company will talk to you first, assess your credit report, and discuss your current situation. An up-front fee is a red flag that the company will probably take your money and run. Any type of charges you may incur should not be exorbitant and this is something you need to make sure of. If a $1000 is what your case will cost in a particular credit repair company, then you should look for another one.
Keep an eye out for re-inventors
Some companies will tell you that you can wipe your credit slate clean by "re-inventing" yourself with a new social security number. This isn't true. In most cases, what they plan to do is get you a new credit report by applying for an Employee Identification Number (EIN)--used by businesses--which resembles a social security number, and you're told to use it as such. But this practice, known as "file segregation," is a scam, and it's also illegal! Avoid any Credit Repair Company that suggests this practice.
Look for the helpful one that in which you can also help yourself
With a good credit repair company, they will tell you, for free, what you can do for yourself such as contacting credit reporting bureaus about errors and writing letters to creditors. If a credit repair company suggests something illegal or unethical like disputing a legitimate charge or fee on your credit report, then they should be avoided.
Before signing up with any Credit Repair Company, make sure you check with the Better Business Bureau. This way, you can avoid rip-off artists and scammers because they'll have records of any formal complaints against the company.