Looking to repair your credit? Here’s how to avoid scammers

This year, Americans have a total of $841 billion in credit card debt. Overall, the national average card debt among cardholders with unpaid balances is over $6,500. That includes debt from bank cards and retail credit cards.

If you’re looking to repair your credit, you may want someone to help you with the process. Your credit score is key to your finances and important when buying a car or home among other things. There are many legitimate companies in the credit repair industry. However, scammers take advantage of people, making phony promises of quick credit fixes, and target individuals overwhelmed by their credit card and loan payments.

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

■ Consider fixing your credit on your own. For instance, get a copy of your credit report and dispute any errors. Bring past-due balances current and make payment arrangements if necessary. Reduce your credit utilization ratio or how much available credit you’re using.

■ Obtain a copy of your credit report. You’re entitled to a free credit report annually from each of the three credit bureaus: Experian, Equifax and Transunion.

■ Get help from a nonprofit credit counseling service that can help you review your goals and make a plan to reach them, as well as restore your financial health.

■ Read reviews. Search the Consumer Financial Protection Bureau’s database for reports on companies you may be considering to help repair your credit.

■ Avoid companies that promise to get damaging information off your credit report completely. They cannot do this if it’s accurate.

■ Recognize no company can guarantee good results. Any company making this guarantee is likely looking to scam you.

■ Dispute inaccurate information by directly contacting credit bureaus. Don’t listen to companies who tell you not to.

■ Avoid companies who suggest you change your identity to change your credit history.

■ Know the Credit Repair Organizations Act states that credit repair companies aren’t allowed to take any form of payment until their service is completed. Don’t pay any fees upfront.

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

For more information about credit repair companies and credit counseling agencies, visit Bbb.org or call 937-222-5825 or 800-7765301. BBB can provide you with a list of Bbb-accredited ones and profiles on ones you’re considering. Report scams you come across to Bbb.org/scamtracker.