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How To Spot A Credit Card Repair Scam?

If you have bad credit, consulting a credit repair company seems like the best option to get your credit on the right track. Such a company will charge you a fee to eliminate negative data on your credit reports and leave the relevant and up to date information. These services promise to improve your credit scores, but the truth is, you can do it on your own. The unfortunate thing about credit repair industry is the number of scams involved. Here are the signs of unscrupulous companies that claim to help you build credit.

  • The company doesn’t provide a copy of consumer rights as per the state’s law
    You must know your rights before you get a credit report or dispute any inaccurate information on your credit card. A credit repair company should inform you of these rights and let you know that you can rectify the erroneous data all on your own. If they don’t provide such a copy of the consumer rights, do not pay a single dime as you might be dealing with scammers. The agreement form should have these details:

Name of the company
The services they want to offer you
The amount of money they charge you
The period it takes to do the repair
A statement that you can cancel the agreement within three days

  • Upfront payment

If you are asked to provide advanced fees before the actual service concerning your credit reports, then avoid the company like the plague. The federal law prohibits such upfront fees. Regardless, many credit repair companies break this law, and some of them are not even aware that it is illegal to ask for upfront fees.

  • The company wants to delete accurate information

If the information on your credit card is reported accurately, no one should remove it. Any company that promises to remove positive information from your credit is shady. This is a tactic that is used by identity thieves whereby a new identity is created with new SSN. That’s why you must not give out your social security number.

Poor credit puts you in a vulnerable position because you are more likely to fall for credit card repair scams. Even if you are desperate for better credit, do not allow yourself to fall for fraudulent companies and agents. Always remember that there are laws that govern credit repair organizations. Make sure that the service you’ve hired fulfills all the necessary obligations.

If we say that credit repair companies are scammers, we would be exaggerating. If you are searching for where to fix my credit, you better shop around and verify the credibility of a company before settling for it. Treat any company you come across with a bit of skepticism to avoid disappointments.