When you need credit repair, it’s essential to know the difference between a scam and legitimate business practices. Unfortunately, many scams out there offer to “repair” your credit for a fee. But these services can’t do anything more than give you an idea of what is considered good or bad when it comes to your credit score.
For real help with improving your credit, contact a reputable company today.
What Are The Most Common Scams For Credit Repair?
Having damaged or poor credit can be a huge problem for you when applying for a loan. If your score is low, it will be hard to get approved and have the opportunity to make any large purchases like buying a car or home.
While there may be plenty of people telling you that they can fix and patch things fast, there are also plenty of scammers that will take your money and not deliver the services they promised you. Some of the most common red flags include:
● Tradeline renting
This happens when you are told that you can get your credit scores to improve by creating a new account for each tradeline. These lines of credit are then reported on the report as open accounts, allowing you to create an opportunity to raise your score. However, this is illegal and could be considered fraud if someone were found guilty of doing it.
This won’t repair your credits, and when someone added you as their authorized user, you may be giving them access to your credit.
● Credit privacy number
This is similar to EIN. Your CPN is used to protect your credit report. The benefit of this number is that it can be used to check on your credit history and prevent anybody from getting a hold of it if they don’t have the proper credentials. Scammers may use it instead of your SSN to access your information. It’s also considered identity theft.
● File segregations
IT happens when an individual or company offers to provide you with an EIN or CPN. They will ask you to submit your SSN and other information for them to process the request. This is a way of getting access to your credit report by using misleading methods.
File segregations are severe cases that can put customers at risk, especially if they give away their data or financial credentials. It’s best not to be tempted by promises of fixing or creating an account because it may backfire later on when somebody else takes over this account without authorization from you.
Whether a legitimate agency or company, these file secretions are considered identity theft which only means trouble for consumers who might find themselves having a hard time clearing up their names after years of being blacklisted.
How To Identify A Red Flag?
Before working with a credit repair company, there are several crucial factors that you should know to avoid being a victim of a credit repair scam. Take note of the following:
● Unclear legal rights and remedies
You must understand the legal rights and remedies included in your contract with a credit repair company. Many times, especially for companies that are not well-established or reputable, it might come as no surprise to find agreements written so poorly that you would have difficulty discerning precisely what services will be provided from one sentence to another.
● Claims you need a new identity
If the company offers a new identity, this is a clear sign that you are dealing with a credit repair scam.
● Offers instant results
When a company promises to give you instant results or credit in days, this is also an indication that the service is not trustworthy.
● Asking for up-front payment
Any company that asks for up-front payment is not a legitimate credit repair service. Upfront payment prior to rendering their services is a no-no. This is a clear indication that you are dealing with a scam.
● Ask to misrepresent your information
Unlawful companies that advise you to misrepresent any or all of your credit information are not to be trusted. If they insist that they need to do this for you to change any legal information, then it is a scam.
What Do You Need To Do If You've Been A Victim?
- If you have fallen victim to a credit repair scam, you must take the following actions.
- First of all, contact your creditor and let them know what has happened – they will close down the account if needed.
- Next, report this to your local police department or Better Business Bureau (BBB).
- You can also file a complaint with the Federal Trade Commission.
- If necessary, consult an attorney for legal advice on how best to protect yourself from future financial hardship.
Can A Credit Company Help Fix My Credit Score?
The answer is yes, but you need to make sure the company you are working with is legit. Some companies will charge an upfront fee for their services or use high-pressure sales tactics to get consumers to pay a lot of money upfront for their service.
To help you identify a reliable credit repair company, here are several vital pointers to consider:
- Explains your legal rights
- Ensure the company you are working with is reputable
- Offers a free consultation and fee quote
- Will not make any promises they cannot keep.
- Maintains good communication with you and updates you on the progress of your credit score
- Offers a 100% money-back guarantee if they fail to deliver what is promised.
- It helps consumers obtain an actual FICO® Score, not just information about how their credit file will be affected by specific actions like paying off debt or closing accounts.
While having bad credit is not illegal, it can cause you to be turned down for jobs or loans. Repairing your credit score may take some time, but it is well worth trying to avoid falling victim to these scams.
If you are looking for a company that offers high-quality service without any surprises along the way, contact The Oasis Firm today! We will work with you and give our honest opinion about what would help fix your current situation. Remember that there is always hope – do not let anyone tell otherwise!