Credit Repair Business - Spotting Fraud

Credit repair businesses are known for helping people get back in control of their finances and out of debt. Trained professionals, certified counselors know exactly how to deal with your creditors and are experts at negotiating workable payment plans with them in your behalf. These repair businesses aren't free services and can sometimes be costly, but most fees can usually be included in the plan.

Before even considering a credit repair business, be aware that there are a lot of fraudulent scam companies out there just waiting to steal your money. Some red flags that should help you stop the bad ones are as follows.

1. If any business tells you that they can restore your rating completely in 30-60 days, it's a scam. It is simply not possible to repair bad history in so short a time. It takes months or even years.

2. If a business wants you to pay up front for their services they're not on the level, Real credit repair professionals advise and consult for free and charges are included in whatever plan is finally agreed upon.

3. Some fraudulent companies actually promise to make your report perfect because of supposed contacts in the big 3 reporting agencies. This is highly illegal and seems an obvious and ridiculous scam though amazingly people do fall for it.

4. Some scam companies will file disputes on your legitimate debt (which gets removed from the record till the resolution) Then they take your money and run and then of course the debt is placed back into your history.

5. If you are told to change your tax identification number in order to get a new and clean history. Know that this is an illegal practice as well, and it doesn't really work anyway. All your other info is still the same so the link back to you is automatic so don't believe them.

If you are planning to hire professional credit repair services, be on the look out for these signs and research thoroughly the company you plan to use. Consumer reports and blogs, and the BBB should all have good reviews of the company in question and don't use them unless they have a favorable history.

This article was written by Frank Froggatt an expert on free report scams. If you need help fixing your credit score, you can find the help you need while relaxing at home by visiting creditfixrepairreport.com.