How to Avoid Credit Repair Scams and Grifts

Credit repair scams can be emotionally and financially draining. If you suspect something is too good to be true, it often is. To help ease your mind about credit repair services, we’ve rounded up a few of the most common scams.

Knowing you are getting what you paid for will help you rest easier. You want a credit repair professional you can trust. Here’s our go-to guide for everything we know about credit repair scams.

Legitimate Credit Repair Companies Don’t Ask for Money Upfront

If someone is asking you for money upfront, they aren’t legitimate. A reputable credit repair company won’t ask you to pay anything until you’ve worked out terms.

Imagine if someone called you over the phone and asked for money. You most likely would never think about giving them your credit card information.

The same goes for service providers. If someone comes to paint your house, you wouldn’t pay for the job in full until it’s completed. The same goes for credit repair services.

If someone is making you pay upfront with no questions asked, this could be a scam. You could end up paying for only partial service. You want to make sure you have in writing the results they promised.

Only once you’ve agreed upon terms and the results you need should you make a payment. You need to see all the disputes and services your credit professional will be providing.

Sounds Too Good To Be True

If promises sound too good to be true, they almost always are. Some companies over promise and under deliver. Don’t fall for the trap.

No company can offer you a complete credit turnaround within weeks. The truth is, credit repair takes time.

If you want real results taken care of by a professional, you’ll want to make sure the job is done right. Your credit repair pro will only promise what they know they can deliver. Between the two of you, you will come up with a priority list of what is most critical to get off of your credit.

When a company says they can do everything you ask without any questions, there is often a lie in there. Falling for a scam like this can be tough on your emotions and your wallet. Keep the lines of communication open.

The Credit Fix Company Isn’t Able to Answer Questions

If you went to your doctor and they couldn’t answer simple questions about a procedure, you’d be uneasy. You shouldn’t feel this way about your credit representative.

You should feel confident in the answers you’re given for any question. If they don’t know the answer, someone should always be willing to get back to you within a reasonable amount of time.

A reputable company won’t have any issue explaining things. They also won’t be afraid to tell you no. If they can’t help you, they should refer you to someone who can.

You never want to feel like the credit repair company is giving you a false guarantee. A legitimate service will tell you the truth, even if it isn’t what you want to hear.

Credit Repair Company Scams Often Give Misleading Information

The company you choose should always be open and honest. You should receive everything in writing. If the company can’t give you all the services you’re paying for, there is a problem.

You deserve a contract in writing stating all the services they are giving you. If you receive confusing and misleading information, this isn’t a good sign. Some credit repair companies may try to confuse or overwhelm you, so you don’t know what is going on.

You want to make sure your company is transparent. If there is anything you don’t understand, call it out and ask the question. If they offer an even more confusing answer, you can take it as a red flag.

Watch out for the companies that you know are giving you false information. If you can tell they are feeding you false promises, walk away. You can also tell a lot about the company from their reviews

They Ask You to Commit Credit Repair Fraud

If someone asks you to make a new credit identity, this is a big problem. You should never change or falsify your identity to get a new credit report. A company should never ask you to lie or misrepresent yourself.

If you report misleading information or lie you’ll face serious consequences. Your credit repair company should always be truthful and honest about their work.

You should never have to give false information to repair your credit. If something feels illegal, report it right away to save someone else from a similar scam.

Do Your Homework

When you’re first having a consultation, make sure you have your questions ready. Ask them to be as upfront as possible about the services they provide.

Do a little homework yourself by saving money and making your payments on time. Track your own credit and watch your spending. Stay on top of your finances and use this time as a clean slate.

When to Hire a Pro: Avoid Credit Repair Scams with a Legitimate Company

Credit scams can be frightening. If you’re struggling to fix your credit on your own, it’s time to call in a professional. Avoid credit repair scams by asking questions and going with your gut.

Know that no matter what anyone says, quality credit repair will take some time. Thankfully, all your patience and hard work will pay off. With a legitimate credit repair company, you’ll be well on your way to better financial health.

If you’re ready to get in touch with a credit repair specialist, fill out the contact form here. You’ll be contacted by a professional you can trust.