Having bad credit is often a product of carrying too much debt or failing to pay debts as agreed. Many Illinois residents have found themselves not only struggling to meet their debt obligations but also keeping their credit ratings at decent levels. Some may be tempted to turn to credit repair services for help, but it is necessary for them to be careful about who they trust with their information.
The simple truth of the matter is, credit repair scams are very real and extremely enticing. When a company makes promises that it can provide one with a clean credit profile free from bankruptcies, bad loans, liens and a number of other issues that will lower one’s credit score, just about anyone in bad enough financial shape would jump at the chance to achieve a fresh financial start — no matter the cost. There are, in reality, very few credit repair companies out there that can actually improve one’s situation. Most of them are just scams, so beware.
According to the Federal Trade Commission, several signs indicate a credit repair company is not legit. The biggest tell is that it may ask for payment upfront. Legitimate firms cannot accept payment before they have done any work. Other things to look out for include:
- Failure to explain one’s legal rights at any point
- Tells one to lie on credit applications
- Advises one to stop direct contact with credit agencies
- Promises to supply a new credit identity
The adage “if it sounds too good to be true, it probably is,” certainly applies when looking for credit repair help. In truth, the best person to repair one’s credit profile is oneself. Illinois residents who have trusted their money and credit repair to the wrong people can seek legal assistance to address the matter.