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How to avoid credit repair scams

Be careful with any financial assistance that looks too good to be true

How to avoid credit repair scams
How to avoid credit repair scams. Image: Pixabay

If you’ve found yourself in some financial difficulties and your credit score has been damaged, you’re probably looking for ways to get yourself back on the road to financial health.

Your credit score can have a big impact on whether or not you’ll be able to access new loans or lines of credit, and also the fees and charges that you might be required to pay.

But if you’ve damaged your credit score you might need to consider the services of credit repair agencies, however this can be a high risk strategy and you need to be careful that you’re dealing with legitimate businesses.

Here is a quick overview:

Debt management strategies

There are two strategies that credit repair companies can utilise in order to help improve your credit scores. Firstly, they can dispute any inaccuracies that you have identified. Secondly, they can help you manage and pay off your debts.

You should look for a non-profit debt management organisation who is committed to acting in your best interests. Their primary objective is to help educate you, not making money off you.

Avoiding scams or disreputable firms

Do your research. Google the different firms that you are considering, verify that they are reputable businesses and check for any online reviews. Also think about where you heard about the firm that you’re considering – have they been aggressively advertising on late-night television, or have they been recommended to you by someone that you trust?

Consider carefully the fees being charged. Are they asking for money to be paid up-front? Are they able to clearly demonstrate to you how much their services will cost you in total. If their pricing isn’t transparent and easily understood then you should proceed with caution.


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