Guide to Recognizing a Credit Repair Scam

Certainly, all of us would want to have a flawless credit report history as it is our sure ticket to be eligible in applying for credit card accounts or other types of loans. However, for some of us, no matter how hard we try to maintain the integrity of our credit rating, it is inevitable that there situations in our lives when we cannot really pay our debts, thus, tarnishing our name. The solution to the problem is credit repair.

Guide-to-Recognizing-a-Credit-Repair-ScamCredit repair is the process of cleaning up your credit history from errors such as inaccurate information or bad rating from your previous lenders or employers. The credit repair company is responsible in removing this negative information by filing disputes to concerned credit agencies. If within 30 days the credit bureaus are not able to verify the dispute, your bad credit rating will be removed from your credit report.

However, not all credit repair companies are reputable and can be trusted to help you in cleaning your credit account. A lot of credit repair companies found on the internet are fraud or scams that prey on the vulnerability of those who need help the most. Here are some ways in order to detect whether your credit repair company is authentic or just a scam.

  • Scam companies do not have physical addresses or contact numbers where you can send your inquiries or complaints. This is the most common strategy to identify whether the credit repair services you intend to hire is legit or not. If the website does not refer to a physical address and is only characterized by a post office box, then do not proceed in transacting with them. Always look for a valid email address, an active phone number, and an office address where you can visit them.
  • The price is unrealistic. When you request for a quotation, the price is either too cheap or too expensive. If that is the case, then most probably, it is a scam. The only way that you can identify a legitimate credit repair company through their pricing plan is their manner of providing you their price quote. A trusted company assesses your needs first, soliciting pertinent information, and identifies what is the best course of action to take in order to successfully repair your credit account. After which can a price quote only be released. To make sure, conduct comparative shopping of other credit repair companies and determine the price median. The price of a legitimate company is competitive and is closely similar to other repair businesses in the marketplace.
  • A legitimate company normally provides you with the 30-day trial before deducting the amount from your credit card. You should also have the freedom to cancel the account whenever you want.
  • Your email provider automatically junks in correspondences from your credit repair company if it is a certified scam. So when you see an email with a catchy subject line that promises you to clean your credit report 100%, do not believe it.
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