Credit Repair Lies and How to Avoid Them

Your credit score is vital for your financial security. Having a good credit score will affect every part of your financial life and can help you get better interest rates, better terms on loans, and even affect things like your car insurance rates. Of course, everyone gets in a financial bind from time to time and things do happen. If you’re trying to improve your credit score, you’ll notice a lot of options. The internet alone is filled with companies promising to help repair your credit quickly, but a lot of these are nothing more than scams. Here are a few things to remember that can help you avoid credit repair scams.

Be wary of quick credit fix promises

1) You shouldn’t believe anyone who promises to help repair your credit within days or weeks. The truth is that if your credit score is a problem, it will likely take you an extended period of time to successfully increase your credit score no matter how you go about it. If a company is promising rapid results, they’re lying to you outright. Also, if you find yourself dealing with a pushy representative who is trying to convince you to sign a contract without even bothering to fully understand it, you should avoid the company. This is your financial future, so take the time to understand every aspect of what you’re being offered.

Be careful of up front fee’s

2) Be sure that you aren’t dealing with a company who wants huge upfront payments without explaining the steps they’ll take toward increasing your credit score. And look out for companies who want to charge you a few hundred dollars for doing simple tasks that you can handle on your own. Some may even try to charge you for setting up a budget or for providing mortgage calculators that are provided for free at other sites like Prudent Financial Services. You may very well need help to repair your credit, but you shouldn’t pay for unneeded services.

Escrow accounts

3) Steer clear of so called ‘escrow accounts’ that ask you to place large sums of money into accounts where they gather interest until they can repay your loans. Instead, the repair company will deduct money from the account for themselves instead of paying your creditors. This won’t help repair your credit – it will simply do even more damage to it. There are numerous companies out there who specialize in increasing your credit score.

Take the time to do some research, and you’ll be able to find the best option for you.

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