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How to Tell If A Credit Repair Company Is A Scam

While there are many reputable and legitimate credit repair companies out there, there are also many that are a scam. Below are warning signs for how to tell if a credit repair company is a scam.

What characteristics tell you if a credit repair company is a scam

Avoid credit repair companies that have any of the following characteristics.

  • They will not provide specifics for how to increase your credit score. This is highly suspicious, since the reputable credit repair companies will tell you the specific actions they will take and make sure they have your buy in.
  • They do not tell you that you have the right to dispute information yourself, and that you can obtain your credit report without their help. Credit repair companies are supposed to give you this information.
  • They promise to create a new identity for you. This is fraud and is illegal. Therefore, if there is a credit repair company that promises this, you should disengage and report them to the Better Business Bureau.
  • They promise to remove accurate information from your credit report. Again, this is fraud and is illegal.
  • They do not provide specifics on the timeline or steps that they will go about performing their services. This probably implies that they do not actually perform any services and will just take your money and run.
  • They do not tell you exactly how much the services cost or how much you will be charged. This would give them the room to tack on hidden fees after doing very little to your credit score (perhaps even lowering it).

In conclusion, it’s vitally important to choose a reputable and effective credit repair company. Choosing the wrong one may lead to a bunch of lost time and money, major headaches, and potentially a lower credit score. Thus, it’s important to be cautious and to understand the warning signs, so that you can spot if a credit repair company is a scam.

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