Good information to avoid credit scams from Matt Listro:
In this post I share the 6 ways to identify a credit repair scam according to the FTC:
If you are not that organized or willing to do it yourself, work with a company referred by someone you know that has used them successfully.
Here are 6 ways to identify a credit repair scam:
" 1 * The company wants you to pay for credit repair services before they provide any services. Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.
2 * The company doesn't tell you your rights and what you can do for yourself for free.
3 * The company recommends that you do not contact any of the three major national credit reporting companies directly.
4 * The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.
5 * The company suggests that you try to invent a "new" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.
6 * The company advises you to dispute all the information in your credit report, regardless of its accuracy or timeliness."