If you’re like most people, you want to do everything possible to improve your credit score. Unfortunately, there are a lot of scams out there that promise to help you repair your credit but do more harm than good. And, of course, if you’re not careful, you could easily be scammed out of your hard-earned money in your hard time. On the other hand, the best credit repair will help you out as best as they can. So how can you spot the scam? Lucky for you, here we’ll show you the telltale signs of a credit repair scam so that you can avoid them and protect yourself.
Pressuring to Pay Up-Front Fees
One of the biggest red flags when it comes to credit repair scams is whether or not the company asks for payment upfront. According to the Federal Trade Commission, under the Credit Repair Organizations Act, credit repair companies are prohibited from requiring payment before they provide any services. So if a company is pressuring you to pay upfront, that’s a significant sign that they’re not legitimate.
Promising to Improve the Scores Drastically in a Short Time
What’s more, if a credit repair company is promising to improve your credit score in a short time dramatically, that’s another huge red flag. According to the FTC, it typically takes months or years of responsible credit management to see a significant improvement in your score.
Moreover, there’s no guarantee that your score will ever improve at all. So if a company is making grandiose promises, that’s a sign that they might not be legitimate. If you encounter such a case, it is best to turn your back immediately and find other options that are more trustworthy.
Promising to Remove Negative Information From Your Credit Report
Another sign that a credit repair company may be a scam is if they guarantee that they can remove negative items from your credit report, regardless of whether or not those items are accurate. No one can make that promise because only time, a good payment history, and responsible credit management will improve your credit score. And even then, some items may stay on your credit report for up to seven years. So if a company is promising to do the impossible, that’s a sure sign that they’re not legitimate.
Refusing to Explain Your Rights
As a consumer, you have certain rights when it comes to your credit report and credit score. And a legitimate credit repair company will take the time to explain those rights to you. However, if a company is refusing to do so, that’s a sign that it might not be on the up and up. It’s because they don’t want you to know that you have the right to dispute any errors on your credit report, for example.
So those are just a few of the telltale signs of a credit repair scam. If you’re ever in doubt, always err on the side of caution and contact the Better Business Bureau or your state attorney general’s office to make sure that the company is legitimate. Remember, you should never have to pay for something that you can do yourself for free. So if a company is promising to repair your credit for a fee, beware.