Beware of credit repair scams.
There are many credit repair companies that are essentially scams. They take your money and they do not improve your credit or they only temporarily improve it. The Federal Trade Commission (FTC) offers this advice for avoiding credit repair scams:
- Do not work with a company that wants you to pay for credit repair services before they have provided services
- Don’t work with a company that won’t tell you your legal rights or explain what you can do on your own
- Don’t work with any credit repair company that tells you not to contact a credit reporting company directly
- Avoid a company that suggests disputing all of the information on your credit report, whether or not it is accurate
- You cannot legally create a new “credit identity”; if you follow illegal advice and commit fraud, you may be charged with a crime