Personal Credit Coach

Credit Repair Scams are Out There – Here’s How to Avoid Them

Stephen Leifer - Tuesday, September 13, 2016

Anyone who has credit issues and is struggling to better their financial situation, might be tempted to work with a credit repair company. It is true – these companies can really help your situation and make it possible to get your credit profile back on track, but not all of these companies are looking out for your best interests. As a matter of fact, some credit repair companies prey on desperate individuals, looking to make a buck off of their anxiety and confusion about credit.


If you want professional assistance with your credit situation, but you have concerns about less-than-reputable credit repair companies, here’s what you need to be on the look-out for:


Never Give Money to Credit Repair Companies that Ask for Payment Upfront


Credit repair companies are entitled to payment for their services,  but only after the particular service charged for is completed.


Never Work with a Credit Repair Company that Wants You to Assume a New Identity or Be Dishonest in Any Way


If you are given a new social security number or asked for an employee identification number, you are not working with a reputable company. This is true, too, if you are asked to misrepresent yourself or your situation in any other way.


Never Work with Companies that Seem Too Good to Be True


They probably are and you’ll learn the hard way  that their promises are empty.


Never Work with Companies that Do Not Inform You of Your Legal Rights


Credit repair companies should be upfront and not seem “fishy.” If you are discouraged from contacting the three major credit reporting agencies  without explanations that make sense to you, or your requests for legal information are ignored, you’re likely working with scam artists.


Never Work with Credit Repair Companies Unless the Arrangement is Clear


You should receive a contract that outlines your arrangement in detail and feel as if your questions are answered, no matter how trivial they might seem.


Do look for membership in Industry Associations such as NACSO, The National Association of Credit Service Organizations and CCSA, The Certified Credit Consultants Association.

These associations work to weed out the bad apples from the industry and assure that their members “Play by the rules”.


To learn more about credit repair or to speak with someone who can help you repair your credit, contact New You Financial (www.newyoufinancial.com.)

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