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Credit Repair Scam

How the Credit Repair Scam Works:

(with video below) Your years of post-secondary education didn't pay off, all that traveling you did was fun, but unfulfilling, and now you're left with a boat-load of debt (or maybe not, but would like your credit score to be a little higher just so you can buy a house or a car). Are you in that situation? Then read on and avoid the Credit Repair Scam. How to spot one?

Watch the video below to see how to recognize credit repair fraud:

How to Spot a Credit Repair Scam Video

Imagine this scenario: You are desperate to get the credit report situation worked out and you're sweating over it. Then one day, you see the answer to your problems. It's an online ad, simply stating: "Fix your Credit!". The company looks genuine and professional.

 

How to Build Your Credit Score Immediately - Perfect Bait

You contact them and they respond by saying they know people at Equifax, Transunion or some other credit rating agency. They swear to teach you how to build your credit score immediately.

The company also claims that will get rid of the negative information in your credit report right away. Alternatively, they also suggest you try to invent a new credit identity by applying for an Employer Identification Number (EIN) to use instead of your Social Security Number (if in the US), Social Insurance Number (Canada), National Insurance Number (UK) or the equivalent in Australia.

 

Indeed, they also tell you they can repair and improve your credit for a fee. You fork over the money, usually around a thousand dollars, if not more, thinking that your credit woes are solved.

Unfortunately, you're just a thousand dollars further away from paying your bills. Your credit will not be fixed.

Watch the video below to see the Top 10 mistakes you might do when trying to improve your credit.

10 Mistakes When Trying To Fix Your Credit Video

 

How to Avoid the Credit Repair Scam:

The one who can fix your credit in the most effective way is you! Consolidate your debt or set up an automatic payment system - whatever it takes to get you to pay your bills on time! If the company claims that can get rid of negative information in your credit report walk away. No one can do this.

It's also a federal crime to misrepresent your Social Security Number or to get an Employer Identification Number from the Internal Revenue Service under false pretenses. Beware of companies that make you pay before it provides any services.

 

If your credit is damaged there are ways you can work on improving it even if it's really bad. If you can get in the good habit of always making on time your payments, credit agencies and creditors will take notice and your rating will improve. By paying your bills on time you can establish your financial responsibility and show your good for your fiscal word.

You should avoid major financial blenders like bankruptcy. Most fiscal errors stay on your credit report for years and it takes a long stint of excellent credit behavior to have significant blemishes removed. You should also cut down on your credit cards.

Use one or two low key cards to build your credit back up but make sure you stay on top of those don't let them get you in the more trouble.

 

Another good move this to call your credit card companies and ask them to lower your credit limit. A low credit limit looks good to investigating agencies. You can also take out minor loan and have someone with good credit cosign for you. This way you can piggyback off of someone else's good credit to help get yours up.

However, the risk involved with this lies with a cosigner. You need to to make sure the cosigner can maintain his/her good credit standing.

Meanwhile, make sure you ask for your credit report by contacting an accredited organization yourself, such as Experian, Transunion, EquifaxCredit Repair, or whatever the credit company in your country is. Also, always check the fine print on any deal you agree or sign on.

 

How to Report the Credit Repair Scam:

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:

Report Scammers To The FTC Here

 

How to Protect Yourself More:

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