{"id":353788,"date":"2022-11-02T14:22:47","date_gmt":"2022-11-02T20:22:47","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=353788"},"modified":"2022-11-02T14:25:17","modified_gmt":"2022-11-02T20:25:17","slug":"scams","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/credit-repair\/scams\/","title":{"rendered":"Credit repair scams: how to spot + avoid them"},"content":{"rendered":"\n
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Disclosure regarding our editorial content standards.<\/a><\/p>\n\n\n\n

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A company may be a credit repair scam if they guarantee results, ask you to lie on applications, demand up-front payments and don\u2019t explain your legal rights. <\/p>\n<\/div>\n\n\n\n

Credit repair services are meant to help people review and fix their credit and learn healthy credit habits. Unfortunately, the credit repair industry is full of scams that take advantage of consumers\u2019 money and information.<\/p>\n\n\n\n

Below, we\u2019ll help you spot the warning signs of a credit repair scam. Not all credit repair agencies are problematic, so we\u2018ll also help you understand how to find a quality credit repair service and get the help you need.<\/p>\n\n\n\n

<\/a>What is a credit repair scam?<\/strong><\/h2>\n\n\n\n

A credit repair scam is a company that sells you a false promise to erase your bad credit. In reality, these companies take your money, don\u2019t help improve your credit and then disappear, leaving you to pick up the pieces. <\/p>\n\n\n\n

It\u2019s important to note that not all credit repair companies are scams. Companies must follow industry regulations put forth by the Credit Repair Organizations Act (CROA)<\/a>.<\/p>\n\n\n\n

The CROA is a federal law that protects consumers by defining what agencies can and can\u2019t legally do when providing credit repair services. Companies that do not follow the CROA regulations are considered an illegitimate business.<\/p>\n\n\n\n

If a company offers you a too-good-to-be-true promise about fixing your credit scIf a company offers you a too-good-to-be-true promise about fixing your credit score, it\u2019s likely exactly that\u2014too good to be true. Improving your credit won\u2019t happen overnight. Instead, building up your credit will require time and a commitment to healthy credit habits.<\/p>\n\n\n\n

<\/a>Credit repair scam warning signs<\/strong><\/h2>\n\n\n\n

There are some common\u2014and clear\u2014warning signs of credit repair scams you should watch out for.<\/p>\n\n\n\n

<\/a>They make guarantees about improving your credit score<\/strong><\/h3>\n\n\n\n

It\u2019s illegal for a credit repair company to tell you they can guarantee repair results.<\/p>\n\n\n\n

Ultimately, no company can promise this because these companies have no control over your credit. Instead, your credit is determined by private companies called credit bureaus<\/a> that collect information from banks, mortgage companies and other creditors.<\/p>\n\n\n\n

Sometimes, a credit repair scam will go so far as to promise you a \u201cnew credit identity.\u201d This illegal approach can get both you and the agency in trouble.<\/p>\n\n\n\n

Watch out for:<\/strong><\/p>\n\n\n\n