How to Avoid Credit Repair Scams

Credit repair scams are schemes that promise to fix your credit report quickly, easily, and cheaply. However, these promises are often false, and some of these scammers may even be trying to steal your identity or money. Here are some tips on how to avoid credit repair scams:

1. Do Your Research: Before you sign up for any credit repair service, research the company online. Check the Better Business Bureau, consumer protection agencies, and other online review sites to see if there are any complaints against the company.

2. Beware of Unreasonable Promises: If a company promises to remove accurate negative information from your credit report, or to improve your credit score in a short period of time, be wary. These promises are often too good to be true.

3. Don't Pay Upfront Fees: According to the Credit Repair Organizations Act, credit repair companies are prohibited from charging you upfront fees for their services. They can only charge you after they have performed the services promised.

4. Read the Contract Carefully: Before signing any contract with a credit repair company, read it carefully. Make sure you understand the terms, fees, and any guarantees.

5. Don't Share Sensitive Information: Be wary of any company that asks for your social security number, credit card information, or other sensitive information before providing you with any services.

6. Consider Credit Counseling: If you are struggling with debt, consider seeking help from a reputable credit counseling agency. These agencies can help you create a budget, negotiate with creditors, and develop a plan to pay off your debts.

7. DIY Credit Repair: You can also repair your credit yourself. Get a free copy of your credit report from each of the three major credit bureaus and dispute any inaccurate or outdated information.

In summary, to avoid credit repair scams, do your research, beware of unreasonable promises, don't pay upfront fees, read the contract carefully, don't share sensitive information, consider credit counseling, and try DIY credit repair.