BEWARE
Your credit is the most important aspect of your financial life - and unfortunately, this means you may experience some stress when dealing with less than perfect credit. As in many other industries, the credit repair industry has more than its share of unethical individuals that are out to make a buck, but do not have your best interest at heart, and may try to take advantage of your stress at this point in your life. For example, I have heard numerous stories about people who paid for ineffective services with no positive results in the end, or even worse paying for credit repair and not hearing from the person again.
Advertisements in the newspaper or online are also rampant with misinformation, designed only to get phones ringing. Many credit repair companies claim to remove negative information with the flick of a wrist. They make bold claims: "Collections, Charge-Offs, Bankruptcy... no problem! 100% guaranteed, credit report cleared in 30 days."
Unreasonable promises and guarantees are the first signs of a scam. Anyone who guarantees anything in the credit repair industry should raise your suspicion. There are no guarantees. You should only work with a company that has a refund policy of some kind if certain results are not achieved.
The following are a few warning signs to look for when dealing with a credit repair company:
- Whenever you hear the word guarantee
- Don't advise you of your legal rights and laws that protect you
- Suggesting that you create a "new" credit report
- Suggesting you create a "new" credit identity
- Suggest any fraudulent or illegal activity
- Don't provide a written disclosure of your right
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