Bad Credit Repair Scam

Many people who have bad credit fall prey to a con game called the bad credit repair scam.

These people end up shelling out money they don’t have for a worthless course or system that claims to be able to repair their credit so they can qualify for credit cards or mortgages. Usually this system is presented as a miraculous method of eliminating records of bad debts from your credit record.

In many cases the miraculous method is simply a piece of paper that tells people to pay their debts on time and not spend more money than they make. There is no miraculous method only common sense advice everybody already knows.

How the Scam Works

The fraudsters behind the scam usually claim to have a system that will wipe your credit record clean of bad debts. This claim is a blatant scam because the only way to get legitimate negative off your credit record is to wait seven years until is automatically expunged from your record.

It is also possible to get negative data take off your record by challenging it or getting the creditor who reported it to withdraw it. Sometimes a creditor will withdraw negative information if you pay off a debt.

The credit bureau will remove challenged information until it is verified. That is they will contact whoever reported that data and see if they stand by it. If the creditor who reported the information verifies it, the data goes back on the credit record. This method can be used to temporarily raise a credit score.

Many fake credit counseling services simply call the credit bureaus and challenge the data on your credit record. This will give you a temporary increase in your credit score but it’s not a permanent fix.

How to Avoid the Scam

The way to avoid the bad credit repair scam is not to send money to any service or person that claims to be able to repair your credit. There simply is no such thing as credit repair, the only way to repair your credit is to pay your bills and discharge bad debts.

You should also avoid any credit counseling service that advertises or wants you to pay for it. Legitimate credit counselors don’t charge for their services and usually don’t advertise. You have to seek them out and the services they provide are usually free.

Most credit counseling services you see advertised online and elsewhere are simply the credit repair scam repackaged.