Credit Repair Scams Are Ruining a Legitimate Industry

Credit repair is a legitimate industry that has seen explosive growth over the past decade; and like any other industry on the rise, a few bad apples see excess cash-flow and come up with credit repair scams to get their cut of the money.

The fact remains that millions of Americans have incorrect or questionable content on their credit reports. Subsequently there is a need for knowledgeable individuals with a mastery of the laws and procedures that encompass credit repair.

Obviously it’s in the consumer’s best interest if they are cautious when looking for an ethical credit repair company. Some of the more common scams to look out for:

Creating a New Identity Scam
This attempt to trick the credit bureaus by creating a credit profile with someone else’s Social Security number or a new federal tax ID number is not only unethical, it’s illegal.

Dispute Mills
Companies that offer to dispute unlimited accounts until you are satisfied with the results are likely to leave you disappointed. Meaningful credit repair is going to involve more than just disputing negative accounts.

Excessive Promises or Guarantees
No legitimate credit repair company is going to promise or guarantee results of any kind. There is simply no way to ensure what response you will receive from credit bureaus, creditors, or collection agencies. The only guarantee should be a money-back guarantee if you’re not receiving the services discussed.

Fabricating Information
Consumers should be aware of companies who have “found a loophole” or “have a connection with the bureaus.” Credit repair is regulated by federal laws; attempting to skirt the system is only going to end up with your credit profile worse off than when you started the credit repair process.