subject: Three Keys To Avoiding Being Scammed By Internet Credit Repair [print this page] Your credit report may have mistakes, issues, and even defaults if you haven't looked at it for a while. Luckily there are companies online that can assist you in removing even defaults. These companies are call Credit Repair Companies and they are prolific online. You do however, have to watch out for con-men companies and ensure that you pick a Credit Repair Company with a good reputation using these tips.
No down payments first
Don't go near Credit Repair Companies that require you to make a down payment even before they see you face to face. A company with a good reputation will want to sit down and talk to you first to understand your credit situation without demanding a down payment. Any sort of down payment should set off alarm bells that this company may run off with your money. Also, make sure that the fees you are paying are not enormous. If they say that your case is special and that the bill will be in the thousands of dollars, please just walk away.
Don't go near "re-inventors"
There are companies that claim that they can clean your credit issue by re-inventing your credit situation with a new SSN (or Social Security Number). This is absolutely untrue. The trick here is that these companies apply for an EIN (or Employee Identification Number) which is normally used by businesses and looks like a SSN. This is known as "file segregation" and is a well known con which is also against the law. Stay away from Credit Repair companies that use this method.
Search for companies that want you to succeed for yourself
A good Credit Repair Company will tell you (for free!) what you can do yourself, such as writing letters to creditors and contacting the credit reporting bureaus about errors. Avoid any Credit Repair Company that encourages you to do anything illegal or unethical--such as disputing a legitimate charge or fee on your credit report.
Before signing up with any Credit Repair Company, make sure you check with the Better Business Bureau. They'll have records of any formal complaints against the company, so you can avoid scammers and rip-off artists.
