Avoid Credit Repair Scams:
There are many good and ligitimate agencies who for reasonable startup fee and a monthly charge ranging from $40 to $80 will help you repair your credit. However in an economy that requires a good credit score to get the best interst rates, better housing and even a decent job is creating an industry of scammers who prey on consumers eager for the quick fix to their credit problems, but in the end they will only take your money and offer nothing in return.
If you worry that you might fall victim to a credit repair scam, then the following information might give you a better idea what to look out for and save you money that you can't afford to lose.
First, walk away from any company requesting a high startup fee, if you do not consider their fee reasonable don't pay it!
A reputable company will offer you a contract that allows you to cancel without recourse, in other words you can cancel without owning them another penny.
Be leery of any organization guaranteeing they can remove every derogatory item on your report, there is no way anybody can make this guarantee without first contacting the credit bureaus and the creditors.
No one can guarantee to get you a particular credit score, say 680 when you now only have 350, if someone states this they are just telling you what you want to hear. Raising your credit score takes a combination of erasing the dings and establishing good credit.
You know you are working with a fraudulent company if they try to get you to change your identity by getting an Employer Identification Number (EIN) and use this to create a new credit history. Not only is this a scam, IT IS AGAINST THE LAW for you to use this as your personal identification to obtain credit.
Never let a credit repair service fool you into believing that they can do something to repair your credit that you can't do yourself. Your best bet is to repair your credit yourself and protect your personal identification from those who could damage your credit even more than it presently is.
If you feel you have already been a victim of a scam you can report the company to the attorney general of your state, also submit a complaint to the Fedaral Trade Commission (www.ftc.org) and the Better Business Bureau.