Some people have bad credit that is just the way it is. There are some things that one can do to try to repair that bad credit. There are even some companies that are there solely to help one repair their credit. However, one must watch out for credit repair scams. Believe it or not there are companies out there promising to help repair your credit, but they are just really scamming you.
There are a few things that should raise a red flag that what you are looking into is a scam. The first of which is payment methods. Never let a company tell you that you need to pay them before they have done any services for you. This is a red flag; you should never have to pay for services until they have been performed. Keep an eye out for that, never believe them if the company representative tries to tell you that it is standard to do things that way, let them know it is not, and if that is what they require that you will find another company to work with.
If the company you are working with tells you not to contact any of the three major national credit reporting companies directly, then there is a red flag. It is your right to contact these companies. The cred repair company should let you know that it is your right. If the company fails to inform you of your rights, that is another red flag. Do not work with them!
Some of these credit repair companies may even try to tell you that you can create a new credit identity. Red flag! Do not do it. This could cause problems for you in the future. It could even be claimed that you are committing fraud, in which case you could be in some real legal trouble!
If the company gives you illegal advice and you follow it, by creating a new credit identity for instance, you could be committing fraud. This could cause you to be in more trouble than you were before you tried to get help. So watch out, know your rights, and know the laws.
Another red flag is if the company tells you to dispute what is on your credit report even if it is true. No one can legally remove information from a credit report that is accurate. The only thing that can do that is time. For instance bankruptcy information can stay on your credit report for ten years, mostly all other negative information will stay on your credit report for seven years.
Do not ever send these companies the original copy of any document they request. You must keep the original document yourself. Send them a copy. They must be okay with that, if not then there is another red flag.
Sometimes you will be expected to sign a contract with these companies. If you are to sign one, make sure that you read everything very carefully. Make sure you understand everything as well. If there is something that you do not understand, make sure to get ahold of the company first and have them explain it to you.
Most states have passed laws to protect an individual from these scams. If you have been scammed you must report it! Some people feel embarrassed to report it because of the problems they already have and the circumstances for which they were working with the company in the first place. Do not be embarrassed, these laws were passed to protect you, put them to use.
If you are thinking of working with a credit repair company make sure to look for the red flag that tell you that you are going to be scammed. Make sure to read all paperwork very closely and understand everything that it says. If you do feel you have been scammed, report it immediately!
Latest posts by Roxxie (see all)
- Does The CHOICE Act Promise a Better Future for Helpful Financial Services Like Fast Cash Loans? - December 26, 2017
- Donald Trump Will Knock Down the Legacy of Elizabeth Warren Regarding Payday Advance Loan - December 5, 2017
- CFPB Should Not Tighten the Rules for Lenders Providing Payday Advance Loan - November 14, 2017