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Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a mortgage, an auto loan, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds of dollars in fees, these companies do nothing to improve your credit report.
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:
• Companies that require you to pay for credit repair services before they actually provide thier services.
• Companies that do not tell you your legal rights and what you can do for yourself for free.
• Companies that tell you not to contact a credit reporting agency directly.
• Companies that recommend that you create 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.
• Companies that advise you to take any action that may seem illegal (like creating a new credit identity). If you follow illegal advice and commit fraud, you may be subject to prosecution.
The offers from credit repair scammers may seem tempting when trying to avoid bankruptcy or trying to rebuild your financial life after bankruptcy, but you need to protect your future by not taking their bait.