Credit Repair Scam
Credit Fix Scam: How It Works
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 you would like your credit score to be a little higher just so that you can buy a new house or car. Are you in that situation? Then read this article and make sure to avoid the Credit Fix Scam, mostly advertised online with "Fix My Credit" headlines. Essentially, the crooks claim to teach how to improve credit score immediately. How to spot the scam?
Watch the video below to see how to recognize credit repair fraud:
Imagine this scenario: You are desperate to get the credit report situation worked out, and you are sweating over it. Then one day, you see the answer to all your problems. It is an online ad or an Instagram/Facebook post, featuring a desperate-looking man, simply stating: "Fix My Credit!".
The company looks genuine and professional, while the engagement on their social media platforms seem to be encouraging enough for you to give them a ring.
"How to Improve Credit Score Immediately" Is The Perfect Line for Cybercriminals
You contact the company, and they respond right away. They say that they know people at Equifax, Transunion, and some other credit rating agencies. They swear to teach you how to build your credit score immediately.
The company also claims that they will get rid of the negative information in your credit report quickly. Alternatively, they also suggest that you create a new credit identity by applying for an Employer Identification Number (EIN) to use, instead of your Social Security Number (if you are in the US), Social Insurance Number (in Canada), National Insurance Number (in the UK) or the equivalent in Australia.
Indeed, they also tell you they can repair and improve your credit for a fee. That's where the scam occurs. 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. The company you hired based on fake reviews and social media accounts is just a bogus agency run by a scammer from the comfort of his bedroom.
Watch the video below to see the Top 10 mistakes you might do when trying to improve your credit:
Credit Fix Scam: How To Avoid
The one who can fix your credit most effectively 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 it can get rid of negative information in your credit report, walk away. No one else 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 awful. 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 is to call your credit card companies and ask them to lower your credit limit. A low credit limit looks right to investigating agencies. You can also take out a 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 make sure the cosigner can maintain his good credit standing.
Meanwhile, make sure you ask for your credit report by contacting an accredited organization yourself, such as Experian, Transunion, Equifax, Credit Repair, or whatever the credit company in your country is. Also, always check the fine print on any deal you agree or sign on. Avoid the credit fix agencies at all costs. Learning how to improve credit score immediately is not easy – it's just a simple pretense for scammers to get you in their hook.
Fix My Credit Scam: How To Report It
Make your family and friends aware of the Credit Fix 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:
How to Protect Yourself More:
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