A low credit score and a blemished credit file can severely impact your financial condition. The need to improve your credit score might tempt you to avail a credit repair company’s services, but not every credit repair company works to your advantage!
Credit repair scams are more common than you might think. These companies make use of your credit information and can even scam you.
Don’t let such dubious credit repair companies from taking your advantage. Read this blog to know more about the most common scams that shady credit repair companies commit and how to pick a reliable credit repair company.
Advance Service Fee
Even before you’ve availed their services, shady credit repair companies might hand you an extensive service bill! These upfront bills are proof enough that unreliable credit repair companies will make use of your personal information and your money and then vanish without a trace!
If a credit repair specialist demands an upfront fee even before getting your credit scores improved, know that this company is out to scam you!
The company keeps you in the dark.
The federal law makes it mandatory for credit repair companies to provide you with a ‘Consumer Credit Files under State and Federal Law.’ These files give you the right to access your credit file and challenge any misinformation on your own.
These scam companies don’t want you to know that you can enhance your credit score on your own as well.
Make you a Victim of ‘Identity Theft.’
Identity theft occurs when a scammer steals your personal information, such as your social security number. The scammer then uses your private information to take out loans in your name. When the loans aren’t paid back, creditors come knocking on your door.
Scamming credit repair companies can propose the option of becoming a victim of ‘identity theft’ and secure a new ‘social security number.’ Getting a new social security number then allows you to start afresh.
Creating a ‘new’ identity
If the company asks you to revoke your previous credit file and create a ‘new’ identity with a new social security number, know that it’s time to dash the door!
Creating an entirely new profile will give a fresh slate and improve your credit scores right from the beginning; however, know that the Social Security Administration doesn’t encourage this activity.
These scams can severely damage your financial reputation. At 007 Credit Agent, we have been providing our credit repair services to our customers since 1989. Our loyal clientele is testimony to our reliable credit repair services. Our credit repair specialists ensure that they use the right methods in accordance with Federal law to improve your credit score.
Schedule a free consultation with our credit repair specialist today!