Get the tools you need to repair your credit today

Recognizing Credit Repair Scams

Bad Claims and Bad Business

Caution is advised when shopping to find a valid and useful credit repair organization that can help with your credit issues because there are companies out there who make grandiose promises and deliver nothing more than broken promises and an empty wallet for you. Of course the easiest way to avoid falling victim to a credit repair scam is by using to get connected with a legitimate credit repair company at no cost to you. If you must search on your own, however, here are six quick tips for avoiding those credit repair scam businesses and stay on track.
  1. Avoid those that demand upfront payment: A legitimate credit repair service will evaluate your situation thoroughly and do their work, hopefully to your satisfaction, before payment is required. The Credit Repair Organizations Act (CROA) is a 1997 federal law that forbids credit repair organizations from accepting money from customers until after they have fully performed the services as stipulated on their contract. This is the most common way for credit repair scams to work, getting your money, delivering no real product and then giving you the brush-off.
  2. Avoid those who make wild 'miracle' claims: Hard, factual claims about their ability to change your credit score, eliminate all negative remarks, or completely restore your credit report to a clean state, are all based on lies. You will usually find such outlandish claims coming from those same businesses that demand upfront payment.
  3. Be cautious with those that are nonprofit: Though there are legitimate nonprofit credit repair businesses out there, but some of them call themselves nonprofit based on very loose regulation standards when they really operate out of a great desire for profit. If you go with a not for profit service, be sure to ask them for proof of their 501-3(c) status before you sign with them. A legitimate nonprofit will have no problem providing this to you.
  4. Be cautious with those that are religious: Similar to the nonprofit credit repair scams out there, there are some that claim to be of a particular religious affiliation. Again, you should seek proof of the organization's not for profit status before signing any contract.
  5. Research, Research, RESEARCH: Before you sign with any business it is a good idea to do some research into their background. The Internet can be a powerful tool for this search. Start with the Better Business Bureau and work from there. Find customer reviews from an unbiased website and learn all you can before turning over a thin dime of your money.
Get credit repair help now Consolidation Options