[-] Credit Repair - Buyer Beware

How to Tell If a Credit Repair Company is a ScamYou see all of the ads on TV and in print. Fix your credit problems, improve your credit score, and they show an 800 number and give a website for more information. Are these programs legitimate or are they frauds? Here are the facts that everyone needs to know. The first thing to know is the difference between a legitimate credit counseling agency and a scam. A credit counseling agency is usually non-profit. In addition, a legitimate credit counseling agency will not promise to fix credit problems and improve your credit score. Instead, they
 will give you sound advice on how to manage your money, pay bills on time, and decrease debt service. A legitimate credit counseling agency will not ask for money upfront. Many banks and credit unions offer free credit counseling services. In comparison, scams usually make incredible promises. They ask for a monthly fee plus an upfront fee. These fees are expensive. Here is how to tell if it is a scam, even if they are non-profit. Check with the local State Attorney General’s Office and ask them if there are any complaints against the company you are considering. Then check with the BBB (Better Business Bureau). Once that is done and you are satisfied that the company is legitimate here are some points to consider before you shell out your hard earned money on one of these services. How Can I Tell if it is a Scam?Find out exactly what services the company is offering you. Changing social security numbers or obtaining an EIN (Employee Identification Number) for the purpose of starting a new credit file is illegal and it can be considered fraudulent by lenders if you secure a loan using these documents. If this is part of the services offered, it is a scam.