Have you been targeted by a credit repair scam? If you’re looking to improve a low credit score, you may look into working with a credit repair organization. These institutions attempt to help clients improve their scores. However, it’s important to keep an eye out for these scam tactics to keep yourself safe!

Demanding Payment Upfront
The Credit Repair Organizations Act of 1996 specifically prohibits agencies from requiring payment before the credit service has been performed. If an organization mentions charging you before completing the promised service, it’s best to take your business elsewhere.

Promising to Remove Bad Credit Marks
If there are bad marks on your credit report that are current and accurate, there is no legitimate way to remove them from your report. Bad marks only go away with time. Any organization that claims to wipe scores of bad credit information is misleading their potential clients.

No Contracts
Never do business with a credit repair organization without a written contract. All of their services must be clearly outlined to their clients before any service or payment is provided. Working with any organization without signed paperwork can leave you susceptible to financial harm.

Discouraging Contact with Credit Bureaus
Any suggestion to not contact the major credit bureaus in the US is unsound advice. Transunion, Experian, and Equifax are the three main companies that create credit reports. Every person has a right to reach out to a credit bureau about their score and any dispute they may have.
And Remember…
If the behavior of an organization seems suspicious, trust your intuition and do more research. The Credit Repair Organizations Act restricts companies from any deceitful behavior such as misleading advertisements and false promises, especially those that are targeted towards people with limited financial means. Clients should always be properly informed and presented with their rights and a written contract.