Credit-Repair Scams: Beware!

You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, email messages, and maybe even calls offering credit repair services. They all make the same claims:

  • “Credit problems? No problem!”
  • “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”
  • “We can erase your bad credit — 100% guaranteed.”
  • “Create a new credit identity — legally.”

You’ll know you’re encountering credit repair fraud if a company: Scam Alert

  • insists you pay them before they do any work on your behalf
  • tells you not to contact the credit reporting companies directly
  • tells you to dispute information in your credit report — even if you know it’s accurate
  • tells you to give false information on your applications for credit or a loan
  • doesn’t explain your legal rights when they tell you what they can do for you

Don’t believe these claims: they’re very likely signs of a scam. Indeed, attorneys at the Federal Trade Commission, the nation’s consumer protection agency, say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

Also, understand that no one can legally remove accurate and timely negative information from a credit report. You can ask for an investigation —at no charge to you — of information in your file that you dispute as inaccurate or incomplete. Some people hire a company to investigate for them, but anything a credit repair company can do legally, you can do for yourself at little or no cost.

The good news is, by following the plan outlined in the DebtFree Academy’s Protégé and Sage courses, you will learn everything you need to know about building great credit for a lifetime while you get completely debt-free!

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