Learning about avoiding credit repair scams is essential information. Unfortunately, companies target people like you who are financially vulnerable and may have poor credit histories.
A credit repair scam artist might make a promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job once you pay them a fee for the service.
The truth is, many companies are not able to deliver a better credit report for you using the methods they promote.
So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.
All that being said, there really are legitimate companies that work with credit restoration that can help you. The key to avoiding credit repair scams is to recognize them.
If you see a credit repair offer, here’s how to tell if the company behind it is trying to scam you.
If you lie or commit fraud, you may find yourself in an even worse mess. It’s illegal to lie on a credit or loan application, to obtain a Social Security number or an Employer Identification Number under false pretenses.
You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.
So do your self a favor and be sure that you work with a legitimate credit repair company that follows the law and doesn’t over-promise and under-deliver.
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