How to Spot a Credit Repair Scam

| Tedis Baboumian |

Your credit score and credit history can affect many aspects of your financial life including whether or not lenders are willing to extend credit to you and if they are, what interest rate you’ll be approved for. If you’ve had credit problems in the past, you may be anxious to find a way to fix your credit, but not all companies that claim to be able to help you improve your credit are legitimate. Here’s how to spot a credit repair scam.

Asking for Payment Up Front

If a credit repair company asks for payment upfront, it’s a scam. Credit repair companies are prohibited from collecting a fee until they have completed all services. Many consumers don’t know this, and scammers take advantage of this by promising quick credit repair in exchange for payment upfront.

Discourages You from Contacting the Credit Bureau

As a consumer, you have a right to file a dispute with the credit bureaus if you find inaccurate information on one or more of your credit reports. A company that tries to stop you from contacting the credit bureau is scamming you.

They Tell You to Dispute Items That Are Correct

It would be nice if credit problems went away as soon as you start working to develop better habits. But that’s not how it works. Negative items can remain on your credit for seven years, and a company that tells you to dispute items that are accurate is misleading you. A credit repair company can help you dispute inaccurate items on your credit report but can’t help you remove negative items that are accurate.

Promising Overnight Results

If there’s an inaccurate item on your credit report, your credit score will go up once it’s removed, but it won’t happen overnight. Once you file a dispute, credit bureaus usually take 30 to 45 days to investigate the dispute. A company that promises overnight results isn’t being honest with you.

Offering to Help You Create a New Identity

Unscrupulous companies may tell you they can hide your bad credit history for a fee. If you pay their fee, they provide you with a nine-digit number they call a credit profile number, and they encourage you to use this number on future credit applications. These numbers may be stolen social security numbers and if you follow their instructions, you may be participating in identity theft. It’s a crime to lie on a credit application or to misrepresent your social security number.

Getting Legitimate Help for Improving Your Credit

It’s important to keep an eye on your own credit report and make sure there are no errors or inaccurate information on it. If you find something on your credit report that’s incorrect, dispute it right away. If you need help with this process, you can count on Dovly to make this process as easy as possible. Dovly is an AI credit engine that can help you track, manage and fix your credit. Try it risk-free with our free membership tier. Contact Dovly today.

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