If you have bad credit, you probably want to fix it quickly so that you can start getting approved for loans with low interest rates, rent properties, get a credit card, and more. Bad credit can affect a lot of areas of your life, so you definitely want to rebuild your credit fast! But, before you jump into anything, be cautious about how you fix your credit.
Many consumers every year fall victim to credit repair scams. These companies advertise a fresh start for your credit history, but they may be scamming you for your money and Social Security information. Real credit repair organizations are governed by a law known as the Credit Repair Organizations Act. This law requires the credit repair service to fulfill certain obligations to you. If the credit repair organization you are looking into does not abide by that law, it’s certainly a scam.
If a company does one of the following things, you may be encountering credit repair fraud:
- Does not explain your legal rights or give you a copy of your contract
- If the contract doesn’t contain the following information: the amount you are being charged, details about the credit repair services, the time period when they will be performing the services, and the name and business address of the organization
- Insists that you pay them before they do any work
- Tells you to dispute accurate information in your credit report
- Asks you to give false information or create a new identity (with new Social Security number
- Asks you to waive your rights under CROA
