SPRINGFIELD, Mass. (WWLP)- If you don’t have good credit you may have been approached by a credit repair company at some point.. but if you don’t do your research you could become a victim.
“People always look for a quick fix, an easy fix and that’s normally not the case,” said Jeremy Powers.
That’s especially true when it comes to having your credit history fixed.
There are many legitimate credit repair companies out there, but there are also schemers who pose as these companies, to try and steal your money. These schemers typically promise you a new credit identity, which experts say is a red flag.
If you follow advice from a credit repair company, promising you a new credit identity, you could be committing fraud and find yourself in legal trouble.
The FTC says for a fee these fraudulent companies will provide you with a nine-digit number they call a “Credit Profile Nmber,” but the company may actually be selling you a stolen social security number.
“Bottom line, a lot of these companies offer to repair your credit, there’s no such thing,” said Director of the Springfield Mayors Office of Consumer Information. “Consumers can do everything they are willing to do for you at a cost to you for free. You just have to figure out what you owe and figure out how you’re going to chip away at those debts.”
Other red flags to watch out for include paying a company before they do the work and being asked to give false information for credit or loans.