If you’ve had some trouble with your credit, you’ve probably received letters and emails from companies that promise to “fix” your credit for you, and quickly. But don’t be fooled. If it sounds too good to be true, it likely is.
It’s important to understand that there is no quick fix to improving your credit. It legitimately takes time and effort.
I want to make sure you recognize credit repair schemes before you become a victim.
Signs It Might Be a Scam:
The company wants you to pay for services before they are provided to you. Under the Credit Repair Organization Act, companies cannot request payment until they have completed the services as promised.
The company recommends that you do not contact any of the three major national credit reporting companies directly.
The company tells you they can remove most or all of the negative information on your credit report, even if the information is accurate.
The company suggests you try to invent a "new" credit identity by applying for an Employer Identification Number rather than using your social security number.
The company advises you to dispute all the information on your credit report, regardless of its accuracy.
Credit Repair Organization Act
“This Act, Title IV of the Consumer Credit Protection Act, prohibits untrue or misleading representations and requires certain affirmative disclosures in the offering or sale of "credit repair" services. The Act bars companies offering credit repair services from demanding advance payment, requires that credit repair contracts be in writing, and gives consumers certain contract cancellation rights."
To file a complaint or to get more information on credit repair fraud, visit the Federal Trade Commission at www.ftc.gov.
Keep working to improve your credit score, and it will eventually pay off. When you feel ready to discuss home financing options, contact me to get started.
*I am not a credit counselor nor representing a financial advisement firm. This information is for educational purposes only and is not to be taken as guidelines or guarantees to improve your credit or financial situation.