Beware: These Credit Repair Companies Could Put You In A Hole

It is not a surprise for people to be approached to be approached by companies that specialize in credit repair but latest information seems to suggest that this might just be lead to a bigger problem

Beware: These Credit Repair Companies Could Put You In A Hole
It is not a surprise for people to be approached to be approached by companies that specialize in credit repair but latest information seems to suggest that this might just be lead to a bigger problem for their clients.

According to financial analyst, Jeremy Powers, “People always look for a quick fix, an easy fix and that’s normally not the case,” So it is safe to say that this backdoor solution might cause more problem than it will solve when it comes to people’s credit history.

While there are other legitimate companies that specialize in credit repair reviews, the number of scammers is quite alarming as most of them are just set up to get money from their clients or simply steal their money. The most popular bait that is used by these companies is the promise to give people new credit identity and that should be a red flag for anyone according to experts.

More Woes For Victims

A lot of people have fallen victim to this schemes and have also broken the law in the process because the method used by these companies are usually against the law. So asides from not repairing your credit, they could also put you in a legal dilemma.

According to the FTC, these fraudulent companies offer a “supposedly legitimate credit profile numbers” which might just be social security numbers that were stolen from others.

The director of Springfield Mayors Office of Consumer Information gave his view on this issue  “Bottom line, a lot of these companies offer to repair your credit, there’s no such thing. Consumers can do everything they are willing to do for you at a cost to you for free. You just have to figure out what you owe and figure out how you’re going to chip away at those debts.”

One of the things to look out for a while working with credit repair companies is their reputations, and it is also advisable to avoid companies that ask for upfront payment and ask you to provide false information when you are sourcing for loans and credit.

Updated Date: 09 March 2018, 19:00

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