Two words you never want to hear together: credit and scam. But, in a down economy, scam artists are taking advantage of consumers with bad credit scores more often than ever before. If you receive an offer about credit repair, be very careful. No one – no one – can alter your credit history legally. So, if you encounter a service or individual offering ‘credit repair’ services, don’t fall prey to the trap! You should never enter into any kind of credit negotiations with anyone besides your lender.
What to Look For
If the company that has approached you asks for money before providing any kind of service, you should be wary. Really, this is a good piece of advice for dealing with any kind of service in the financial world. However, with all the frauds advertising ‘credit repair’ services, it’s especially worth mention.
If the credit repair company encourages you to share your Social Security number in order to make the record-searching process easier, you should know that you’re dealing with a scam artist. You should never share your Social Security number.
Has the company offered suggestions on what you can do for yourself? Companies in the financial industry should always let you know what your various options are before offering their own services. After all, they exist to help you.
If you are explicitly advised not to contact any of your credit card companies, or any credit reporting agencies, then you have received the final, major clue that you are dealing with a credit repair scam.
Be careful; be vigilant. And, remember… you should never enter into any kind of credit negotiations that are not directly between you and your lender.