I felt I needed to include a credit score scam alert article to warn people about these scams.A bad credit score will prevent you from getting a loan for that nice new pool you wanted this summer. Naturally, you want to do something to get that score higher. So, if you have a bad credit score, maybe 500, People will make untrue claims about removing bad debts from your credit report.To avoid being scammed you need to read my credit score scam alert.
How to Avoid A Credit Score Scam
To maintain good credit, is mostly common sense.
- Pay you bill in a timely manner, early rather than late.
- Don’t overextend your credit with high debt balances
- Try to have as few accounts as possible open and paid on time.
- NO bankruptcy, lawsuits or arrests
Correct And Remove Any Mistakes
Sometimes people get false reports on their credit files, or data remains on their files longer than it should. In those situations, you can get incorrect information removed. Everyone is allowed to dispute inaccurate, or incomplete information on their credit reports.
If you spot any mistakes on your credit report, you can write a letter and request it be removed, or corrected.
Use the address or phone number listed below. Many offers for free credit reports, have hidden fees and costs, and enroll you into mailing lists.
Former Spammer – River City Media
Update: The River City Media Data Breach is an example of just such a company, RCM, now defunct, were a spamming company who sent out similar emails offering free credit reports. The purpose was to get you on a mailing list, and fill your email box with spam. They sold your name and addresses to anyone who paid for a list. However, they allowed access to all the names on their list, which also included personal information and passwords. Scammers then had access to your money!
That’s why it is a great idea to request a credit report each year to be sure all the information on your file is accurate. In fact you can request a free report from each of the three credit reporting agencies each year. If you stagger the requests a few months apart, you are more likely to pick up any unusual activity.
How to Get a (Real) Free Credit Report – No Credit Score Scam
You can get a no strings, free credit report from annualcreditreport.com
or call 1-877-322-8228
For more help, visit Fixing Your Credit You can find forms for disputing credit mistakes.
How To Spot The Credit Score Scams
You see an ad for credit repair, and getting cool in a new pool sounds great! So, you give them a call.Too often it turns out badly. Be careful and make sure they are legit with you best interests in mind.
Maybe, you see somebody running an ad to repair your credit. Beware, some of these are turning out to be scams. Not all credit repair companies are scams.
You have to be careful, who you choose.
They offer help in fixing bad credit scores, and cleaning up you report. They can help you get rid of bad marks,maybe removing that missed repossessed car report, and give you a clean record.
Beware Of Fantastic Hype And Free Credit Reports
Sounds too good to be true! Well, sometimes unfortunately it is. These types of methods turn out to be scams.
This is exactly what the crooks know you want to hear, and it is too appealing for people to turn down.
Be aware of this type of sales pitch, because if they offer you a new social security number,or ask you to apply for one, it may well turn out to be stolen.
“Sign For a Loan With Your New Identity” – Credit Score Scams
If you try to use another number other than your SSN,or A CPN Credit Profile Number. They may give you a 9 digit number, to make it look like a Social Security Number but it’s not.
If they ask you to apply for a new EIN, Employer Identification Number.It is a real number, but it is illegal to substitute it for your SSN, so, don’t do it. It is called misrepresentation. It will only make matters worse.
They Will Give You a Clean Record – Credit Score Scams
If it is a mistake, or error that is reported on you credit, then you can get it removed. Otherwise, most negative marks, such as vehicle repossession, and foreclosures, will stay on your credit report for seven years… period.
Bankruptcy stays on for 10 years, and tax liens stay till they are paid, then it will take another seven years before your credit score alert is removed.
If you are told that this can all be removed, don’t believe it. It simply is not true.
Advance Payments Are Illegal – More Credit Score Fraud
It is illegal in the United States, and also Canada, for credit repair companies to charge up front. Credit repair companies must perform their services before they get paid.
- IF they are demanding payment up front,before any work is done, they are a scam.
- Any company telling you not to contact the credit bureaus is not a legitimate company.
- Telling you to falsify documents, or dispute correct information
Read The Contract
Read the entire document carefully to insure anything you sign contains the correct information. Be sure it spells out exactly what you are going to receive.
What are the services to be performed? How long will it take? How much is it going to cost? Ask if there is any guarantee of results? Be sure they explain your legal rights to you, especially the right to cancel the contract in 72 hours, at no cost.
What Can You Do?
You have the right to sue them for what you paid or your losses. If you win then company pays the lawyer expenses. You can also sue them for punitive damages, for breaking the law and lying about what they can do for you.
The Contract Can Be Cancelled Under Federal Law
You have 3 days her in the United States to cancel your credit contract, in Canada it is 10 days. That is Federal law and State Law also in some states.
Education and being aware of your rights may help to avoid being the crooks next victim.
Report a Credit Score Scam
If you have a problem with a credit repair company, report it to:
- Your state attorney general or local consumer affairs office.
- Contact the FTC at ftc.gov/complaint or 1-877-FTC-HELP. The FTC can’t resolve individual credit disputes, but it can take action against a company for breaking the law.
Always report any fraud to the FTC. These reports help them to find out about the credit score scams and frauds.
For more help, try these links.
- Federal Trade Commission
- Consumer Financial Protection Bureau
- Attorney General Office
- The Internet Crime Complaint Center
If you have any comments or questions please leave them below. I want to hear any problems you may have resolved as well.
If you want to learn more about spotting scams and how to avoid them, or how to start the business you have been dreaming about, then take a look at My #1 Recommendation and see how it is possible, to start your own business, work when you want, and live the life you have dreamed of living.