A large percentage of the population in the United States struggles with bad credit, which is a score of 580 or lower. Having bad credit means that a person becomes a risky borrower due to the large amounts of debts and unpaid bills. As a result, they face many challenges when trying to apply for loans, mortgages, or getting a credit card.
Fortunately, people struggling with bad credit can get their credit scores back on track by hiring the services of credit repair companies. These companies have years of experience and expertise and can remove bad information and negative items from the credit report, which is affecting their credit scores.
However, there are many companies out there that are prying on people desperate to improve their credit and scam them for their personal gains.
Here are some common signs that can help you spot a credit repair scam:
The first thing you need to look out for is whether the agency is asking for payment of services before they are actually rendered. Legally, credit repair companies cannot ask clients to pay the fee upfront without any contract or consultations provided. Many companies are unaware that they are not allowed to charge customers upfront, so make sure you do a proper assessment before agreeing to any terms.
If a credit repair company is making bold claims of removing accurately reported information from the credit report, it probably means they are shady. Any accurate information, no matter how it affects your credit scores, legally belongs in the credit report. However, many scam companies try to blame it on identity theft to get it removed from the report.
Promises To Create A New Identity
Stay far away from any credit repair company that offers to create a whole new identity for you. If a company is promising to get you a new federal employer identification number (EIN) or a new social security number, which you can use to apply for future credit products, it’s probably bending the law, and sooner or later you will get in trouble for it.
Don’t trust a credit repair company if it does not provide complete paperwork and is trying to do everything on face value or based on verbal promises. You need to make sure you are provided a copy of the “Consumer Credit File Rights Under State and Federal Law” and given a copy of the contract with the company to check and review before signing it.
Hire a professional Credit Repair Company
At Oak Credit Repair, we have years of experience in providing reliable credit repair services in the USA. Our expert credit repair consultants can help you repair your credit score quickly and at affordable rates. Get in touch with us to know more about our fast credit repair services and how we can help you maintain a good credit score in the future.