How to Avoid Credit Repair Scams | Credit

By PaulCameron
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Many people find out too late - at the exact moment when they need to rely on their credit - that their score falls short of what a lender would like to see. When you're desperate for a quick fix is when scam artists present you with a credit repair claim that looks too good to be true.

One common scam prevalent today is that con artists will say they know someone within the bureaus that they can convince to take less than stellar items off of your credit reports. While it's true that these people might know someone who works within a credit bureau, it's not true that he or she can get unsatisfactory information taken off of your credit report. No person in his or her right mind is going to take unsatisfactory (but accurate) information off of your report just because a friend asks him to.

Now, there are ways to get incorrect information deleted from your report, and this can help improve your score. However, you can do this yourself. You have the right to report that something is incorrect and if it's determined that the credit bureau has truly made an error, that information must be deleted from your report -- and usually within a fixed period of time.

Of course, there are companies that can do this for you, but why would you spend the money? You can simply do it yourself. And of course, you're not guaranteed that someone who's promising to repair your credit report will actually do so. Most likely, they're just out to take your money, or even worse.

Other scammers will claim that they can 'convince' the credit reporting bureaus that the debts on your report are not yours or otherwise invalid. You are the one who incurred those debts, so you should know that no one is going to 'convince' the credit reporting bureaus that those obligations are anyone's but yours.

The company that tells you this will either take the money and run or will make a weak attempt at a resolution and then charge you anyway. No debt can be erased from a record unless it's proven to be false or it's too old for it to be still listed on the reports.

Another common scam to look out for is companies that say they can change the whole credit file into one good clean one. Sorry, it won't really happen. Your debts will remain on there and any activity you do will be reported on it. There's no true way to get a clean record without paying off your debts and paying bills on time.

Potentially the most financially damaging of the common scams, another type of swindle begins with an offer to help repair your credit that quickly becomes an enticement to accept a loan to pay off your debts. These loans typically come with disastrous interest rates attached and huge penalties for late payments. Never enter into a loan agreement under the auspices of a credit repair solution.

One final thing to take note of is that if a company is listing a 900 number, this is a red flag. 900 numbers are used by companies that are usually not legitimate. Of course, any company should be considered with caution, but 900 numbers will definitely tell you that the entity you are considering working with is not legitimate. They're very expensive and again, it's just another way to talk you out of your money.

The simple truth is that there are no shortcuts. You can request a copy of your report from any of the major credit reporting bureaus, check it carefully for accuracy, and dispute any false information. You can pay off your debts and manage your credit wisely. But any attempt to use a quick-fix solution will just result in you losing your hard-earned money to a scammer. Be aware and use your common sense and you will have no trouble avoiding these common credit repair scams.

About the Author

Paul Cameron is editor of Personal Finance at i-KnowHow | Information for Life, where you'll also find ideas and tips for hobbies, home and garden, technology, family and much more.

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