When financial hardships occur, you might feel like you will do anything to dig yourself out of a hole. This can lead you vulnerable to scams offering credit repair services that could do more harm than good. While there are plenty of legitimate companies that can fix credit in Los Angeles, there are even more scammers out there. We’ve discussed ways to help you identify credit repair scams and how to avoid them.
What Does A Credit Repair Scam Look Like?
Many companies promise to fix your credit score quickly and sometimes to even erase all negative items from your credit report. Then when you pay them for their services, you never hear from them again. You’re already experiencing financial hardships and now you’ve spent even more money trying to do the right thing.
Industry regulations are set by the Credit Repair Organizations Act (CROA). Every credit repair company must adhere to these regulations to provide legitimate services. Review these regulations yourself so you can identify scams easier.
Signs Of A Credit Repair Scam
When you’re approached by a company offering to fix your credit score, be aware of some scammer warning signs. Companies promising specific results should be a major red flag. Some companies even try to talk people into creating a new Social Security number to have a new beginning.
Scammers don’t want to talk about legalities, so ask them about their legal obligations and observe their responses. They also don’t want you to reach out to credit report agencies, which should make you feel skeptical. And finally, most credit report scammers want you to be dishonest about certain items in your report. These are only a handful of warning signs you should look out for when approached by credit repair companies.
Avoiding Credit Repair Scams
Avoiding credit repair scams comes down to verifying the legitimacy of every company. Start by browsing online reviews to get a feel for their legitimacy. You can even reach out to the Federal Trade Commission (FTC) to learn about any complaints a company might have received. Never provide any sensitive information or money to companies until they have been fully vetted and have proven their legitimacy.
Core Credit Solutions has an extensive history of helping people fix credit in Los Angeles. Not only will we prove our worth and legitimacy to potential clients, but we can also help you identify scammers. Our goal is to help you recover from financial hardships and repair your credit score as much as possible. Contact us today to learn more about our services.