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At Takecareofmoney we tell you how to recognize scams from an individual or a company that promises to repair your credit score in the US. Remember that, on many occasions, what these companies will do is something you can do yourself.
Currently, people with a credit score of 670 points or less are considered to have a low credit score. This is the case of thousands of Hispanics in the US, who, having poor credit histories, can become victims of scammers who promise to repair their credit scores with magical solutions and, therefore, non-existent.
Therefore, at Takecareofmoney.com we give you some recommendations to recognize fraudulent offers to repair your credit score.
How to recognize a scammer offering to fix your credit?
According to the Consumer Financial Protection Bureau (CPFB), all consumers should be on the lookout for credit repair offers that require you to pay before requested services are performed.
Here are some of the warning signs consumers should be aware of to spot potential scammers:
They pressure you to pay in advance
Companies or individuals that offer to fix your credit but insistently require you to pay before providing their services are often suspected of being scammers.
Also, according to the Credit Repair Organizations Act, credit repair companies cannot request or receive any payment until they have fulfilled the services they have promised.
They promise to remove negative information from your credit report
According to the CFPB, no one can do this. Therefore, if the credit repair company offers to remove negative information from your credit report, even if it is accurate and up-to-date, it is wise to be suspicious.
They ask you to dispute correct information in your credit report
If the credit repair company advises you to dispute all the information in your credit report, it is probably a company that offers fraudulent services.
They refuse to explain what your rights are related to your credit score
Disputing errors on your credit reports is a right you have under the Fair Credit Reporting Act, which means you don’t need to pay a credit repair company to do it for you.
You should also know that you have the right to cancel any contract with a credit repair company, for any reason, within three business days, without incurring any additional charges.
They tell you not to contact credit reporting companies
It’s a good idea to be wary of any credit repair companies that tell you not to contact consumer credit reporting companies directly, as you have the right to contact them if you need to report an error.
Credit repair companies are subject to many federal laws that are intended precisely to prohibit them from deceptive practices to defraud consumers.