Trick… Or Treat? How To Avoid Credit Repair Scams

Dealing with a bad credit score is already enough—but what if you get scammed? Follow this comprehensive guide to learn how to avoid credit repair scams and bump your credit to a healthy score.

How To Avoid Credit Repair Scams

Look for telltale (and some less recognizable) signs that you’re getting involved in a credit repair scam. Some of the signs to watch out for:

• If the credit repair company asks you to pay for their services before any services are provided. The law prohibits credit repair companies from charging upfront fees.
• The company does not inform clients about their legal rights, and the free-of-charge actions they can take themselves to boost their credit first.
• If the credit repair company recommends that their clients not contact a credit bureau directly, including Experian, TransUnion and Equinox. It’s your credit information, and you should contact them directly when there are issues with YOUR credit.
• The company suggests that clients should attempt to create a “brand new” credit report by applying for an Employer Identification Number (EIN) to use instead of their Social Security Number (or if they promise to do so themselves).
• The company advises consumers to dispute any and all items within their credit report, or to take any kind of action that seems illegal. This could mean creating a new credit identity. This translates into committing fraud, and you could find yourself subject to prosecution. This is one of the biggest things to note when it comes to how to avoid credit repair scams.
• If they claim that they can boost your credit scores, without any specifics.
• If they refuse to give you a copy of the contract before you sign. Also, if the contract is missing information, such as the amount of payment that will be required; a specific description of the services they will perform; an estimated time length it will take to carry out the credit repair services; and a form to provide notice of cancellation.
• If they fail to mention that you have the right to dispute credit information, and that you can pull your credit report without their help.
• If they promise to remove accurate, but derogatory information from your credit report. (For instance, claiming “identity theft” when it is indeed accurate information on your report.)
• If they fail to tell you that you are allowed to cancel within three days.
• If they tell you to sign a form waiving your rights under the CROA. Luckily, the CROA voids any sort of waiver of rights the credit repair company signs.
• If they fail to give you a date by which their credit repair services will be completed—and what specific services they will provide.
• If they refuse to tell you precisely how much you will be charged for the credit repair help.

Extra Tips

• You DO have the right to file a lawsuit against a credit repair company if they violate the provisions of CROA. Furthermore, you may be entitled to actual and punitive damages and attorney’s fees for violations.
• You should typically receive a copy of the “Consumer Credit File Rights Under State and Federal Law” letting you know your rights to get a credit report as well as dispute inaccurate credit information on your report. All credit repair organizations are required to inform you that you can perform these services on your own.

Do you have any extra tips on how to avoid credit repair scams? Let us know!

To enlist the help of a trustworthy, effective credit repair company, contact Go Clean Credit today.

No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.

We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away, or you can fill out an appointment request. Contact Go Clean Credit to schedule a free consultation today.