Credit repair scams are difficult to identify and can be especially harmful if you are unaware of them. Certain signs point towards a credit repair scam, so it is essential to pay attention before entering into any agreements or contracts with a credit repair company.
1. Guarantees of specific results: Approach any credit repair company with caution if they claim they can achieve specific outcomes, such as deleting all negative information from your credit report or raising your credit score to a particular level. There is no guarantee that the work done by any credit repair company will result in positive changes to your credit profile.
2. Upfront payments: Legitimate credit repair companies do not require upfront payments. While some companies may ask for a fee to start the process, any company that asks for payment before providing services should be considered a potential scam.
3. Unfamiliar with legal processes: Credit repair scammers typically don’t understand the legal procedures involved in credit repair. They may try to convince you that illegal tactics, such as creating a new credit identity or falsifying information on your credit reports, are legal. It’s important to understand that only legitimate credit repair companies can legally advise and help improve your score.
4. Refuse to explain services: Credit repair companies should clearly explain how they can help improve your credit score, but if they refuse to do so or are overly vague, then it could be a sign that they aren’t legitimate.