Watch out for these Credit Repair Scams

credit repair

So you have decided to purchase a home and have reviewed a copy of your credit report.  You have noticed that you have some items that you need credit repair to remove from your credit report.   I would strongly recommend using a credit repair company that you have previously used or have been referred to by either a loan officer or someone who has previously used a credit repair agency.  The following information was furnished by the Federal Trade Commission.

Unfortunately, there are a few scams out there that you need to be aware of:

  • The company wants you to pay for credit repair services before providing any services.  Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
  • The company doesn’t tell you your rights and what you can do yourself for free.
  • The company recommends that you DO NOT contact the three national credit report companies directly.
  • The company tells you they can get rid of most or all of the negative credit information in your credit report, even if it is accurate.
  • The company suggests that you try to invent a “new” credit identity and then, a new credit report by applying for an Employer Idenification Number to use instead of your Social Security Number.
  • The company advises you to dispute all of the information in your credit report, regardless of its accuracy or timelines.

 

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