Credit Repair Company - 3 Things You Need To Watch Out For
If it's been a while since you've looked at your credit report, you may be surprised to find errors, mistakes, or even a black mark or two. With the help of a credit repair company, those black marks can be erased and the mistakes can be fixed. To choose a reputable credit repair company, try following these tips to help you avoid scammers:
Never pay anything upfront
If handing over a fee or payment before meeting with you is what the credit repair company requires, then it's best to avoid them. Assessing your credit report, discussing your current situation, and talking to you first is what reputable companies will do before they ask for any type of payment for their services. If there's an upfront fee, then this should serve as a warning that the company will likely take your money and run. Be sure that the type of charges you may incur aren't exorbitant. If a Credit Repair Company claims your case will cost thousands of dollars, look for another one.
Re-inventors should be avoided
According to some companies, re-inventing yourself with a new social security number is one way to wipe your credit slate clean. However, this isn't true. In most cases, getting you a new credit report by applying for an Employee Identification Number (EIN) which are used by businesses and resembles a social security number is what they plan to do and you'll be told to use it as such. File segregation is what this practice is called and it's considered a scam which makes it illegal. Credit repair companies that suggest this practice should be avoid.
Look for one that helps you help yourself
Telling you what you can do for yourself such as writing letters to creditors and contacting the credit reporting bureaus about errors is what a good credit repair company will do and all this is for free. Avoid any Credit Repair Company that encourages you to do anything illegal or unethical--such as disputing a legitimate charge or fee on your credit report.
Before signing up with any Credit Repair Company, make sure you check with the Better Business Bureau. This way, you can avoid rip-off artists and scammers because they'll have records of any formal complaints against the company.
Never pay anything upfront
If handing over a fee or payment before meeting with you is what the credit repair company requires, then it's best to avoid them. Assessing your credit report, discussing your current situation, and talking to you first is what reputable companies will do before they ask for any type of payment for their services. If there's an upfront fee, then this should serve as a warning that the company will likely take your money and run. Be sure that the type of charges you may incur aren't exorbitant. If a Credit Repair Company claims your case will cost thousands of dollars, look for another one.
Re-inventors should be avoided
According to some companies, re-inventing yourself with a new social security number is one way to wipe your credit slate clean. However, this isn't true. In most cases, getting you a new credit report by applying for an Employee Identification Number (EIN) which are used by businesses and resembles a social security number is what they plan to do and you'll be told to use it as such. File segregation is what this practice is called and it's considered a scam which makes it illegal. Credit repair companies that suggest this practice should be avoid.
Look for one that helps you help yourself
Telling you what you can do for yourself such as writing letters to creditors and contacting the credit reporting bureaus about errors is what a good credit repair company will do and all this is for free. Avoid any Credit Repair Company that encourages you to do anything illegal or unethical--such as disputing a legitimate charge or fee on your credit report.
Before signing up with any Credit Repair Company, make sure you check with the Better Business Bureau. This way, you can avoid rip-off artists and scammers because they'll have records of any formal complaints against the company.