Is it a Scam? Credit Repair Companies Under Fire

In most cases, you don’t need a credit repair firm

Photo by Dylan Gillis on Unsplash

Since it can be difficult to fix errors on your credit report, it can be tempting to use a so-called credit repair firm. Unfortunately, these firms are more often hype than help.

Is Your Credit Report Accurate?

The attorneys at Finn Law Group often some key information on credit repair and how to avoid scams.

Credit Repair: Don’t Fall For Scams (finnlawgroup.com)

Among other things, they note:

There are many credit repair companies that claim they can help you improve your credit score. However, most of these companies use illegal methods to boost your score. They might tell you to create a new credit identity or they might instruct you to dispute accurate information on your credit report, even if you know it’s accurate. These methods will not only hurt your credit score, but they can also result in legal action.

The bottom line here: Most companies offering credit repair are offering false hope in order to make a quick buck.

Are Credit Repair Companies Help or Hype?

Most credit errors can be identified and corrected by a consumer — for free.

Here’s more on that:

First, credit reporting agencies will investigate the credit dispute and determine whether or not the information on the credit report is accurate with the credit subscriber. If the credit agency finds that the information is inaccurate, they are supposed to correct it and notify you of the correction. However, if the credit agency finds that the information is accurate, they will not make any changes to your credit unless you provide them with additional documentation to prove that the credit reporting error is indeed an error.