Credit Repair Scam Warning Signs
People typically go to credit repair companies for help when they need to improve their credit scores. However, it is very hard to find a good credit repair company that can actually give you results. It is especially hard because of all the scams in the credit repair industry in specific. So what are the most common credit repair scam warning signs, and how can you spot them? Keep reading to find out!
So, why do people try to improve their credit scores? The simple answer is that it is very important to have a good credit score. This is because you will get so many benefits. Some of those benefits are listed below.
Main Benefits of a Good Credit Score
- You can get very low-interest rate mortgages
- You can get credit cards at low-interest rates
- Apartments are available with no security deposits
- You can get auto loans with no down payment
- You can have extra money for yourself by the end of each month
- You can get lower auto insurance rates
- You will be able to qualify for low-interest personal loans
- You will be able to qualify for an SBA loan if you want to start a business
- You will have much better job opportunities
For those reasons, and for many more, people are very interested in improving their credit scores. So, if you are wondering how you can recognize credit repair scam warning signs, keep scrolling.
Warning Signs of a Credit Repair Scam
The main warning signs for credit repair scams include the following:
- Credit repair companies that will ask you to pay before providing their services
These companies may tell you that they can guarantee a higher increase in your credit score, get rid of negative credit info on your credit report, or some other form of these selling points. This may tell you this even if the info on your report is accurate and up to date.
- Credit repair ads or offers that guarantee to increase or repair your credit
First of all, no company can guarantee results, no matter how good they are. All of the top companies admit this. So, if you see a company making these sorts of promises, know that there is a good chance that this is a credit repair scam.
- Credit repair companies that pressure you to pay up-front fees
A very important rule to follow is “Do not pay upfront.” Make sure that you only pay once the services are completed.
- Credit repair companies that promise to remove negative info from your credit report
No company can actually do this if the info is current and accurate.
- Credit repair companies that ask you to dispute accurate information in your credit report
If a company advises you to dispute all of the info on your credit report, even if it is accurate and timely, then you may also be acing yet another credit repair scam.
- Credit repair companies that won’t explain your rights to you
This is a pretty obvious red flag. If you do not know your rights, then the company can do anything they want. So, companies that do this are most likely scamming you.
- Credit repair companies that tell you not to contact credit reporting companies
If a company asks you not to contact credit reporting companies directly, then it is most likely a scam as well. Since this behavior is suspicious, it is best to not choose a company that does this.
Credit repair companies must follow countless federal and state laws. These include the Credit Repair Organizations Act, as well as the Telemarketing Sales Rule. Both of these laws forbid credit repair organizations from using misleading practices. They also do not allow companies to accept up-front fees.
With all of that being said, you must be wondering how you can find a good credit repair company. We can help you out in this step! Below you will find a list of trusted credit repair companies that we have fully reviewed. You can take the time to read each of the reviews on these vendors before making any decisions.
Recommended Service Providers
We understand that it can be challenging to find a good credit repair service provider, especially with all the scams that can happen. So, without further ado, here are our top three recommendations for credit repair service providers.
1. Lexington Law
Lexington Law comes in first place on our list. The reason for this is that it is one of the biggest and most popular credit repair service providers in the field. They have more than two decades of experience, and many trust them to improve their credit scores!
Their monthly fee is $95.95 per month. Some of their best benefits include the following:
- A free consultation
- Many financial tools
- They offer a mobile app
- They also have other legal services
2. Credit Saint
Credit Saint is number two on our list of recommended companies. For almost two decades, this service provider has been helping customers improve their credit scores by getting rid of negative items on their reports.
Their monthly fee is $79.99, and the initial fee is $99. Their main benefits include:
- Three credit repair plans
- 90-day money-back guarantee
- Holding an A+ rating from the BBB
3. The Credit Pros
The Credit Pros is number three on our list. This credit repair company specializes in removing credit errors and mistakes, as well as incorrect info on their customer's credit reports.
Their monthly fee is $69 per month, and the initial fee is between $119 and $149. Here are the main benefits of The Credit Pros:
- Bilingual services are available
- Many financial management tools are included as a part of all credit repair packages
- Credit monitoring comes with the standard service
- They offer a mobile app
- BBB rating of A
- Many customer support options