How-to-Spot-a-Credit-Repair-Scam

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How to Spot the Credit Repair Scam

Credit repair is the simply solution when your credit score is not very good. Although some people do it by themselves, there are those who parents. If you need assistance, you need to know how to spot if this type of company is genuine or not.

The first thing you should know about credit repair companies is because they are governed by way of a law known as the Credit Repair Businesses Act. This means you possess certain rights that you need to know about and any organization who violates the guidelines is probably just a rip-off.

You can tell if this can be a credit repair scam if

The credit repair company does not offer you a pamphlet which says your rights under federal and state laws.

When they have a copy, you must have the ability to read and review it before you are asked to sign anything.

Upon reviewing the contract, it should be suggested there how much money you will be charged for their services, the assistance they will offer, the date by which this can be done as well as the name and address with the organization. There also needs to be a clause within the contract telling you could cancel the contract within 3 days.

The credit repair organization tells you to pay at the start for their services even if they have not done anything yet. The law states that they can only be paid out after they have done their part in helping you repair the credit.

If they promise they can remove anything within your credit report. If this is not achievable, they might even claim that they will help you produce a new federal boss identification number that of course is illegal.

Lastly, the credit repair agency provides you with a piece of paper which you have in order to sign stating that an individual waive your rights under the CROA or Credit Repair Firm Act.

There are certain items that a credit repair company can perform and improving your credit rating from their end just isn’t one of them. This is something you have to do yourself because you are the one that owes your creditors the money.

All they could do is facilitate a deal that is best for both parties like a debt consolidation plan which you have to satisfy.

Should the information stated in your credit report become wrong, again you’ll find nothing you can do because you would be the only one that has the supporting documents which prove these issues have been resolved. You may not actually need the help of the credit repair agency because you can send a letter together with the files to the crediting agency.

Whether it just so happens how the credit repair agency has requested payment up front, not really informed you to your rights as a customer, want you to postpone your rights or even tell you to do something illegal, walk away as well as report them to the particular authorities. After that, carry on looking for a legitimate credit repair business.

To tell if this business is a scam or otherwise not, you can also check with the higher Business Bureau and any other agencies locally which are responsible for avoiding such things to happen. Nobody wants to be come a victim but when you need credit repair, it is possible.

Comments: 58

  1. Tiffanie March 15, 2013 at 3:05 pm Reply

    What are the best ways to start a credit repair business?

  2. Dorthea March 28, 2013 at 8:45 pm Reply

    What is it that credit repair agecies do to get things removed that i cant do myself. I have appt. with a repair agent but am on the ropes on wether i want to use the service or not. I mean he says it will take 45days to get things removed which sounds like he is just writing dispute letters.

  3. Clorinda April 11, 2013 at 8:09 pm Reply

    I want to fix my credit fast, because my husband and I want to buy a new house in about 6 months. There a lost of credit repair companies out there. They say that they can remove bad hits on your credit report.

    Has this worked for anyone? If so, which company? How much did you have to pay them? How much did your credit score increase? How long did it take?

    Thanks a bunch!

  4. Gayle May 4, 2013 at 12:43 am Reply

    I just have a few negatives on my credit report, but my credit is fairly low. Will you recommend a credit repair company or what would you do to clean it up fast?
    Are there any ideas how can I improve my score?

  5. Orlando May 16, 2013 at 7:11 am Reply

    Im looking for a credit repair company to help repair my credit and raise my credit score. There are many companies online but I want to choose a reputable company and do not know how to make sure they are legitimately a good company. Any suggestions?

  6. Brandon July 4, 2013 at 5:43 pm Reply

    I want to buy my home but my credit score is 446 so I have been referred to a credit repair agency for help. But because I have so many outstanding debts, some very old & some new, the estimated price for their service is $1200. Yes, I have tried this process on my own but it takes too long, Should I just go ahead & pay for their service so I can buy my home?

  7. Denna August 23, 2013 at 9:28 pm Reply

    My fiance and I were thinking of filing bankruptcies before getting married to start “fresh” with our credit, so to speak. However, I was online and came across credit repair companies that can help your credit score without having to go as far as bankruptcy. So for those that have used one, how much did it improve your score and over what kind of time period? Any other details (i.e. what company, cost, etc.) would be appreciated. Thanks!

  8. Carla August 26, 2013 at 8:58 am Reply

    I been destroyed after this bad economy we went through.
    My business went from heaven to hell, and I lost it all. Just got out of chapter 7 back in January.
    Will a credit repair company help me anyhow? Does anyone knows a good one for a reference.
    Let me know.

  9. Alessandra September 6, 2013 at 11:23 pm Reply

    I am interested in becoming a credit repair specialist. I fixed my husbands credit and I believe I know some tricks and ways to improve it. However, I was wondering if there is classes I can take. What about licensing in NY? Requirements and any ideas would be greatly appreciated.
    Thank you

  10. Mike September 24, 2013 at 6:49 pm Reply

    I hired a credit repair company, and I know they help in some parts of the credit but I want to know If I can still pay off the remaining balances?

  11. Wm October 5, 2013 at 1:35 am Reply

    What does a credit repair business really mean?

  12. Floretta October 7, 2013 at 7:16 am Reply

    What all do I need to have to start up a credit repair company in the state of South Carolina?

  13. Ai October 14, 2013 at 11:13 am Reply

    There’s so many credit repair co. out there and I don’t know which have a good credentials or does it really work like they advertised?

  14. Hisako October 16, 2013 at 11:58 pm Reply

    I am aware that I can do this myself but I don’t have time to do it myself. Can anyone refer me to a good legit credit repair service. This question is ONLY for people who have used a credit repair service so please don’t answer if you haven’t used one. I don’t have any bankrupt or liens or anything that serious, but I do have a lot of collection, late payments, 1 charge off, and 1 repossession and a lot of inquires.

  15. Donita October 20, 2013 at 3:25 am Reply

    jahnursi…
    What are the requirements for credit repair licensing if you want to start your own business?
    I live in Washington state, and I am starting a credit repairing besiness. I already have a regular business license, and I am filing to be incorperated (LLC) but I am wondering if there is any requirement for a Credit Repairing Agency to be licensed in any other way, or bonded, etc. Does anyone know where I would look to find this information???

  16. Cortney October 21, 2013 at 7:55 am Reply

    What does a credit repair business actually mean?

  17. Rozella October 21, 2013 at 7:55 am Reply

    I am trying to buy another car but since my divorce my credit is bad. I am keeping up current payments on everything but I have a history of bad credit. Recently I was referred to a credit repair co. Do they work?

  18. Dorethea November 16, 2013 at 11:21 am Reply

    I’m currently looking for an affordable reputable credit repair company. I have looked online but there are so many to choose from. Any suggestions? Or can anyone steer me in the right Direction?

  19. Rosy December 23, 2013 at 5:18 am Reply

    How can a Commerce student start with Credit Repair Business?

  20. Porter December 31, 2013 at 7:09 pm Reply

    how does credit repair work? is it a good idea if you have bad credit and want to buy a house.

  21. Jocelyn January 6, 2014 at 6:38 am Reply

    I would like to learn how to do credit repair. Are there any certification programs? Any suggestions would be highly appreciated. Thank you.

  22. Willetta January 6, 2014 at 9:47 pm Reply

    Is investing the money for credit repair wothwhile? Are the results satisfactory from an accredited repair service company? I am looking for first hand experience and reference from someone who has used an online credit repair service.

  23. Josephina January 8, 2014 at 11:14 am Reply

    I paid $300 to an attorney that works with a real estate firm specializing in credit repair, by disputing and of such nature. He hasn’t done anything, he is now unable to be reached? Took my money and left but still around. Can I bring legal action to him? (His company states that he’s doing it on his own). I need a good attorney to help me out, what kind of attorney could help me in this case? Please help me.

  24. Masako January 8, 2014 at 5:45 pm Reply

    I’m looking to purchase a credit repair software. There is a lot of choices can you recommend a credit repair software that has proven results.

  25. Tiffany January 13, 2014 at 6:11 pm Reply

    I have bad credit right now (around 540), and I am trying to fix it. I was wondering if the Credit Repair Services are any good? Also, do you have a recommendation for one that is trusted and worth the money?

  26. Towanda February 2, 2014 at 6:22 am Reply

    Like the people on the internet that want to help dispute and repair your credit?

    I already tried disputing several things myself, went to freecreditreport.com and such and tried disputing things myself but it didnt work.

  27. Sidney February 13, 2014 at 1:56 pm Reply

    okay dont judge Im an IDIOT…I have in the past had trouble paying my bills i was young..I have 25,000 in student loan debt but im current on all of that..I have 5 credit cards that I have ignored since college..again LIKE AN IDIOT..they are all maxed out and closed sent to collections…I am going to call all of them and settle..my credit score is 520…after doing this how much of a change will i see?

  28. Lou February 18, 2014 at 10:23 am Reply

    Has anyone heard of “The Credit Bible” is this legitimate?
    Also on http://www.adviceontime.com Does anyone know or have experience with the credit repair program on that site? It sounds good, but wondering if it really works?

  29. Willard February 18, 2014 at 10:39 pm Reply

    I found another site for a person who used them and how great they were but I just wondered if anyone has used them? Which plan they used? And how long it took to see stuff being deleted from there credit report?

    Thanks

  30. Renay February 20, 2014 at 11:16 pm Reply

    What is the real skinny on Credit Repair. Seems it costs quite alot. Is it honest and worth it. Can someone shed some light on this for me. Can’t I do it myself and save the dollars and where do I get the info to do it myself?

  31. Emeline February 20, 2014 at 11:55 pm Reply

    Do credit repair companies really work. has anyone had sucess with them.. improving credit by say 100 points or more?

    anyone have any solid information
    thanks for the info..but im looking for someone that has actually used one of these oompanies..1st hand knowledge

  32. Alfred February 21, 2014 at 5:24 am Reply

    I used a credit repair agency that has done their job(before they were shut down) and now I have no good credit! How and what should I do to quickly retreive a good credit score for a mortgage loan, preferably in the next year?

  33. Eugene February 21, 2014 at 5:24 am Reply

    Has anyone had experience with or know about the following:
    http://www.creditbureauexperts.com
    Credit Justice Services
    I am looking into credit repair and would like to know if anyone has ever done this and it worked? If so, please give information about your experience.

  34. Gene February 21, 2014 at 6:22 am Reply

    what is the quickest way to repair credit ?
    My friend is getting out a very bad divorce where his ex wife ruined his credit, they were more than 90 days late on cars, home. ect. score is about 550.

  35. Stephen February 21, 2014 at 9:20 am Reply

    I have heard so many things about credit repair… I just wondered if you could share what has and has not worked for you…Thanks

  36. Dimple February 21, 2014 at 9:20 am Reply

    Can anyone recommend a good credit repair service, or a do-it-yourself guide?

    My husband and I are working VERY hard to pay off our debts, but we would like to attack our low credit score from all angles.

    Any suggestions?

  37. Lance February 21, 2014 at 10:51 pm Reply

    I would like to know how to repair my credit on my own. I understand that paying my bills on time etc, etc will accomplish my goals but I have some unforeseen circumstances that have put me in the position I am in…along with poor choices. I have read about the Lexington Law Firm as well.
    What exactly do they do? To the T, I can write letters but I need to know what it is that they charge for as I can do the same thing and not have to pay.
    Does anyone have any success stories. I want to know how to get this negative stuff off my report.
    So just so I understand. The credit repair writes letters on your behalf to your creditors or bad marks on your credit report disputing the charges? Do they write letters every month or why do they charge so much if all they are doing is writing letters? Does anyone have an example of a letter they would write to a creditor, please send it to me so I can see. saas_1gatorfan@yahoo.com Also, I need to know exactly what they do, I mean. Do they go down your credit report and state that the charges are not yours. There are some items on my credit report that are my dads, he has the same name.

  38. Luke February 21, 2014 at 11:35 pm Reply

    Im curious, I’ve heard and read about these services and wonder if they really work.

  39. Irving February 22, 2014 at 4:01 am Reply

    I just recently got my discharge letter from bankruptcy and i want to repair my credit now, and was reading the newspaper and seen this ad about a company that repair credit, so i call them and was told in 3 months my credit can jump up by 50 points and 100 in 6 mos. So before I go there i want to hear from people who has used these repair companies and to know if they work or not ? I’m also going to try to get a credit card and make small purchases and paid it off in full to build my credit back up ,but that going to take awhile. So do credit repair companies really work somebody let me know ?

  40. Britteny February 22, 2014 at 6:07 am Reply

    I recently graduated college and ready to start the next chapter of my life (getting a career and buying a house) but my credit score isn’t the best due to mistakes I made when I was 18. How can I repair it???

  41. Tierra February 22, 2014 at 7:27 am Reply

    am i correct?? i just went to this credit repair place and JUST got some information on how they work….then i came home and found out that all they do is submit letters to credit places.//then they submuit them to the creditors and if they dont respond its deleted….isnt that the same thing u can do on the 3 major credit places website?? called credit disputing?? alll i want to know is–is what these people are charging all this money for (credit repair) if u do some research u can do it free urself??
    that wasnt my question A mercer! i was asking the same thing credit repair services do u can do urself for free correct?

  42. Gene February 22, 2014 at 9:02 am Reply

    my credit score is currently a 568, and i’m only 22. I’ve made a few mistakes, and gotten 2 credit cards when i was 18 that i maxed out and never repaid, in 2008. I am about 2,700 in debt due to credit cards. I am also about another 3,000 in debt due to a closed bank account, money i owed to a cable company, and 1 other small account. My questions are these:

    In what order should i repay these accounts off? Smallest first, to get more accounts paid quicker, or biggest first? Or even the oldest first? or the newest??

    What’s the best way to raise my score?? I dont think paying off these accounts will raise my score, any, if it does it won’t be much. Is a secured credit card the best way to go? I can’t get approved for a standard credit card.

    Are credit monitoring programs such as transunion for me? I’ve already got a credit report, I just have to settle. Would I be better off having a company that will consolidate for me? Or would I be better just to pay off capital one and chase and my cable comp. and everybody myself?

    Please help, I have about 16 months to raise my score from a 568 to a minimum of 630, so I can get a FHA loan to finally purchase a house.

  43. Tracey February 25, 2014 at 11:17 am Reply

    Can anyone recommend a reputable credit repair company in the Arlington, Tx area?

  44. Alexander February 25, 2014 at 12:16 pm Reply

    I’m 19 and sort of have bad credit already b/c when I tried to get an apartment for college I was rejected so instead had to get one in my parents’ name. Sometimes I would pay payments early, but other times I would just totally forget about it and not pay and then I be charged interest..this has been going off and on. So, I have a few questions..
    -In order to build my credit score, is it possible to just withdraw less than 30% or so from my credit line from the ATM then when it gets near the payment due date I can just pay off that entire withdrawal amount then repeat?
    -How long does it take to repair bad credit?….like years? Would I have to pay off credit card payments consistently for many years in order to repair my credit rating?
    -What’s the fastest and most efficient way to repair/build credit?…And how long would it take?…Would cutting my credit card up right now and just stop using it until I graduate from college and get a job repair and/or build my credit?

    THanks!

  45. Daren February 25, 2014 at 12:21 pm Reply

    any experiences with credit repair, credit repair agencies,books, websites, etc….

    i need to repair my credit

  46. Tobias March 5, 2014 at 7:10 pm Reply

    We have a bad standing credit, $15K. We are been recommended to pay it off on our own… which on one income it may take some time, or also been referred to go through a credit repair company. I have heard of when people go through credit repair, often years later the debts re-appear on their credit report… anyone have good decend suggestions? Initial goal, is to purchase a home, that will put us at a lesser mortgage payment than we pay now. Please let me know of you experience, if its either good or bad… need answered!!!!!!!!!!!!! thanks. 🙂
    Alright, I still dont have an answer… negotiating with the companies is impossible…they will not do that!!! So I need a realistic answer!!! ANYONE, seriously?
    Erik, what you are saying is non-sense. Theres no point to that now. Do you have a better solution? I’d like to purchase a home and not wait for the 7 year mark. Question is do you go through a credit agency or do you simple do it yourself?

    Michael how long did it take, and does the debt re-appear back on your credit report within a certain time frame? I heard of ppl who use credit agencies and then within years the debt and creditors re-appear on the credit report…

  47. Davis March 11, 2014 at 9:04 pm Reply

    Hello to you all,
    If you are in the credit repair business can you please tell me a little bit about your experiences with this business, How much money do you make . And if you know of some really good course of software pertaining to credit repair please tell me about it.
    Thank you in advance!!!

  48. Loree March 11, 2014 at 9:05 pm Reply

    I want to repair my credit I know this will take some time however, I have come into some money and want to pay everything offf thats on my credit if I do so what will happen?

    will be removed?
    will my score get higher?

    I’m so clueless as to what will happen after I pay them all off and its kind of embrassing Im only in debt by 3000.00 how sad

  49. Tonie March 11, 2014 at 9:06 pm Reply

    I want to fix my terrible credit rating (destroyed in college) but do not want to pay a company because times are tough, and i am more than capable to do it myself. Can Someone suggest some GOOD free credit repair sites?

  50. Vaughn March 14, 2014 at 2:44 am Reply

    When I was 18 I was stupid and messed up my credit bad. I am now 23 trying to repair my credit. I talked to someone but she just confused me even more.
    I recently paid off all of my debt that was on my credit and my score rose from 540 to 588. I applied for credit cards but of course was denied. Are there any other ways to open accounts to raise my credit? I have student loans but they are deffered until 2014.

  51. Florencia March 20, 2014 at 3:35 pm Reply

    I’ve been working on repairing my credit to be able to get a home loan, amongst other things later in life. I just got married, so it’s better for us in the long run.

    I just ran my report and found that I’ve still got a collection agency on the report TWICE! One for it being seriously overdue and then at the bottom, it’s listed again as paid. I called them and made arrangements for them to remove both these issues off my credit report completely since they were paid and they agreed.

    So, how much will this effect my credit score and by how much? An approximation would be fine in this case because no one knows the formula to calculate this. lol Anyhow, I’m sitting at 604 per experian (way better than the 520 from a year ago) and working to improve my score even more. The ultimate goal is to apply and receive an FHA loan. It would be my first home.

    TIA

  52. Edison May 2, 2014 at 12:56 am Reply

    does anyone have any facts on these credit repair companies?can they really help to build your score legally?I filed bankruptcy in 2003 and need help getting some items off and build my score.

  53. Junita May 25, 2014 at 11:17 am Reply

    Has anyone had experience with theseso called”internet credit repair” copanies and if so does this sorta thing really work to boost your credit and can the things they claim they can get off your credit eventually re appear? What companies would you suggest? Thanks

  54. Rick June 9, 2014 at 6:48 pm Reply

    Hello all I have terrible credit, I an a convicted felon, who has been incarcerated for drugs, and forgery… I have terrible credit, I have a job where I earn almost 2 thousand a month
    I want to establish credit so I may be able to get my own apt. And a car, which I cannot do, can anyone point me to a FREE credit repair service

  55. Adrian June 14, 2014 at 10:00 pm Reply

    I’m into looking to buy a house and my credit needs to be cleaned up,any suggestions on who to use that is respectable, and affordable and does the most they can?I’m In Nevada.I will be looking around the web but your input would be much appreciated………thanks!

  56. Constance June 14, 2014 at 10:00 pm Reply

    I have a VERY low credit score. Couple years ago I completely ruined my credit score. Never thought it was a big deal until now? I was curious to know how fast a credit score could be repair? In the terms of time. I’m looking to purchase a vehicle by the end of this year and would like my credit to be a high 600 close to 700.
    Now I that have a well paying job I can easily manage my credit.

  57. Frances June 17, 2014 at 8:10 am Reply

    They have removed 6 items off my credit report. I just found out that I still owe the debt tho. Is it better just to do a bankruptcy since I still have to pay the creditors back?

  58. Esperanza June 21, 2014 at 2:41 am Reply

    I know that credit repair companies are real and they can work. What I want to know is how do I know a good credit repair company from a scam? I have heard a lot of bad things about Lexington Law and I thought they were a legit company. I won’t be using them but I really need to find a service that is real and won’t take me for all my money and run. ( Please don’t answer by saying not to use a credit repair company. I know that I can do it myself but I don’t have the time and I don’t want to put the effort into it. I am willing to pay to have the service performed for me.)

    Thank you for any help you can give me.
    bdancer: I specifically asked for people NOT to give me answers such as yours. I appreciate your candor and your point of view, but I don’t share it. I want constructive answers not answers from people looking just to get points. Please, if someone asks you not to give in to the hype and hysteria when answering their question, try to respect that request in the future.

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