Better Business Bureau’s tips for avoiding credit repair scams

Your credit can be a scary and confusing issue to navigate, especially because your credit score has a major impact on your financial life and can impact important milestones like buying a car or home. Due to this, those who have damaged their credit score may be looking for a surefire way to bring their credit score up as quickly as possible.

However, because your credit is so important and overwhelming, scammers use this opportunity to take advantage of people and promise to help them repair their credit score.

Better Business Bureau offers these tips to avoid credit repair scams:

■ Look at reviews. Consider searching the Consumer Financial Protection Bureau’s database for reports on companies you may be considering.

■ Understand no company can guarantee good results, so be alert to companies promising to do so.

■ Look for a company that intends to maintain communication with you throughout the entire process of repairing your credit. They may do this by scheduling calls, emails or communication to keep you up with the progress.

■ Avoid companies promising to get damaging information off of your credit report. If they claim they can get accurate information removed, it’s a scam.

■ Be wary of pressure to pay fees. Know that the Credit Repair Organizations Act states that “credit repair” companies aren’t allowed to take any form of payment until the service is complete.

■ Be leery of companies asking you to lie to credit reporting companies.

■ Dispute inaccurate information by directly contacting credit bureaus. Beware of credit repair companies telling you not to do so.

■ Look for companies that take the time to explain your legal rights. Get a copy of the “Consumer Credit File Rights Under State and Federal Law”.

■ Avoid companies suggesting you change your identity to change your credit history.

■ Get a contract, which lists the services the credit repair company is promising you, as well as your payment plan and how long it will take to get results.

■ Don’t follow advice to apply to the Internal Revenue Service for an EIN to use as a substitute for your Social Security number. This is illegal.

Consider fixing your credit on your own. For instance, get a copy of your credit report and dispute any errors. Bring pastdue balances current and make payment arrangements if necessary. Reduce your credit utilization ratio or how much available credit you’re using. You can also seek credit counseling.