Like most things, there are both good and bad credit repair organizations out there. When your financial future is at stake, it’s essential to know what to look for in a credit repair service. This will keep you from being targeted by scam artists who will only worsen your situation in the long run.

Many scam artists offer what seems to be a fast credit repair solution: filing disputes for all of the derogatory information on a consumer’s credit report. While legitimate inaccuracies can and should be disputed, poor credit decisions that the consumer actually made can only be resolved over time. Once the creditors respond to the disputes that have been filed, the items will be returned to the individual’s credit history. The next time the consumer requests a credit report, they’ll see nothing has changed.

Another fraudulent piece of credit repair advice that is sometimes offered is for consumers to apply for an “Employer Identification Number” from the IRS. An EIN is the same length as a Social Security number, and you may be advised to use your new EIN instead of you SSN when facing a credit check, as lenders won’t be able to access your actual credit report. Unfortunately, using an EIN like this is considered a felony, and having a blank credit history won’t do you much good anyway.

There are honest credit repair specialists out there, so don’t let potential scams prevent you from seeking help. Just be selective in who you choose.

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