There’s no shortage of scam artists who would love to trick and manipulate you into handing over your hard earned money. If you’re currently facing the unfortunate problem of bad credit then you should be especially careful.
The stress and frustration brought about by bad credit can make you feel desperate for relief, which can make you more vulnerable to falling for a “quick fix” credit scam.
To be fair, every company claiming to be able to help you improve your credit is not a scammer. The idea that there are no legitimate, professional services available to assist you with your credit problems is dead wrong.
In fact, there are many credit counseling programs and even some reputable credit repair companies that may be able to genuinely assist you, as long as your expectations are realistic and you don’t expect anyone to wave a magic wand over your credit problems.
However, there are many fraudsters as well. Take a few minutes to review the following 3 common credit scams so that you can protect yourself and your loved ones from becoming one of their victims:
1. Credit “Repair” Scams
All credit repair companies are not scams and, contrary to popular belief, their services are not illegal. There are legitimate companies that can help you to dispute inaccurate or questionable items appearing on your credit reports.
It’s worth noting that even with the legitimate credit repair companies, you’ll still be paying a fee for something you could do yourself at no cost. Of course the same can be said of cutting your hair, repairing your car, or preparing your own taxes. It’s ultimately up to you to decide if you want to try to tackle credit-reporting errors on your own or hire a someone to assist you.
Warning Signs: All legitimate credit repair companies will comply with the requirements set forth in the Credit Repair Organizations Act (CROA). You should be VERY wary of any credit repair company that
- Requires you to make a payment before they do any work on your behalf
- Does not inform you of your rights including the right to dispute items on your credit yourself
- Makes outlandish promises (like claiming they can delete everything from your credit reports)