Credit Repair Blog

Watch Out for Credit Repair Companies that Promise Instant Results

The key to getting a car loan, home mortgage or any other loan is having good credit.  In this economy, good credit is more important than ever. 

When people are desperate for help, there are always unscrupulous companies who take advantage of them.  Here are a few tips you can use to make sure that you avoid credit repair scams.

First, follow your judgment—if a credit repair offer sounds too good to be true, it may be.  Remember, no one can remove accurate negative information from your credit report.  (Negative inaccurate information can be!). 

If you see a credit repair offer, here’s how to tell if the company behind it is up to no good:

  * The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
  * The company doesn’t tell you your rights and what you can do for yourself for free.
  * The company recommends that you do not contact any of the three major national credit reporting companies directly.
  * The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
  * The company suggests that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.
  * The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

Also remember this—if you follow illegal advice and commit fraud, you may find yourself in legal trouble.  It is a crime to lie or misrepresent yourself on a loan or credit application.  Always make sure to be truthful and accurate.

Not all credit repair companies are unscrupulous—but there are a few of them out there.  Follow these tips, and use your judgment.  You can improve your credit, you just want to make sure to do it properly.