Do You Know How To Spot Credit Repair Scams

Title: 
Do You Know How To Spot Credit Repair Scams?

Word Count:
410

Summary:
If you have poor credit, don't be conned into quick fixes.


Keywords:
credit, information, cards, credit-repair, phone, scam, company, new credit, credit cards, credit card, bank, credit-repair company


Article Body:
You may see ads on TV, online, or in the newspaper claiming that your bad credit can be quickly and easily fixed.  Don�t fall prey to these scam artists.

Avoid companies that tell you truthful information can be changed or erased to improve your credit or that only the credit-repair company can remove old or inaccurate information. These claims are false. 

Be wary if you are asked for a large sum of money before the credit-repair company completes the job. A money-back guarantee will not protect you from a disreputable company.

Avoid new credit identities

If you have filed for bankruptcy, you may be the target of a credit-repair scheme, often called �file segregation.� Here, you are promised a chance to hide unfavorable credit information by establishing a new credit identity.

However, there is a problem: File segregation is illegal. If you use it, you could face fines or imprisonment.

Other scams

Consumers looking for an easy fix often are targets of other credit-related scams:

Credit by phone: Pay-per-call or 900-number services have become a popular vehicle for credit scams. Advertisements promise that �guaranteed� credit or cash loans are only a phone call away. Instead, the caller might only receive a list of banks offering low-interest credit cards or a booklet on how to establish credit � and a phone charge of $50 or more. Consumers rarely end up getting credit. 

Gold or platinum cards: Beware of promotions for gold or platinum cards that promise to get you credit and build your rating. Although they may sound like all-purpose credit cards, some cards only permit you to buy merchandise from special catalogs and will not help you obtain other credit. You also might be asked to call a 900 or 976 exchange number for more information. These phone charges add up quickly. 

Checking-account scam: This scam, which tricks you into disclosing your checking-account number, typically begins with a postcard advertising easy credit approval or low-interest credit card rates. When you call, you are asked for your checking-account number as �verification.� Your number then can be magnetically encoded on a draft, which is forwarded to your unsuspecting bank for payment from your account. 

If you suspect a credit-repair scam, file a consumer complaint with the Attorney General's Office online or by calling the Consumer Protection Hotline at 1-800-392-8222.

Never give out your bank account or credit-card number unless you know the company is reputable.  Don�t be a victim of these credit card repair scams.