When your credit is struggling, offers of fast fixes can be tempting. Unfortunately, many credit repair schemes are misleading or illegal.
Red Flags
- Demanding payment before doing any work
- Guaranteeing a specific score increase
- Claiming they can erase accurate negative information
- Advising you to create a “new credit identity” or use a different tax ID number
- Telling you not to contact credit bureaus yourself
- Not explaining your legal rights in writing
What Legitimate Help Looks Like
Accurate negative information generally stays on your report for its legal period, usually up to seven years for most items in the US. Nobody can lawfully remove it early. What you can do, for free, is dispute inaccurate information, negotiate with creditors and build positive history.
Better Alternatives
- Nonprofit credit counseling agencies
- Free dispute tools from the credit bureaus
- Your lender’s hardship programs
If You Have Been Scammed
Gather your records, stop payments if possible, and report the company to your national consumer protection authority, such as the FTC in the United States.
Remember: if it sounds too good to be true, it probably is.