Many companies offer to fix bad credit report, repair bad credit reports or improve credit scores. Most of these companies are operating legally and can not be called scams. A scam as defined by Websters is a fraudulent business practice. Here we discuss a recent credit repair scam, how to avoid being a statistic and what a credit repair company can legally do for you.

Between 1996 and 2003, a company (whose name we will not mention) offering to fix bad credit report, repair credit and erase negative items from credit reports sold credit repair services to more than 183,000 consumers and took in more than $53 million. The Federal Trade Commission investigated this credit repair scam (how to avoid being a statistic comes later), stating that they made fraudulent claims and collected money up front. This company claimed to have a quick fix; bad credit report repair takes time. The Federal Trade Commission advises that consumers beware of any credit repair company that claims to be able to achieve credit report repair in a very short period of time. A company like this may be a credit repair scam; how to avoid being a statistic, for starters, is to avoid credit repair companies that offer a quick fix.

The previously mentioned company claimed to own a special computer disc that was worth millions of dollars and could erase bad credit. There is no such disc. There was no such disc. This was a credit repair scam; how to avoid being a statistic, avoid companies which make unbelievable claims. The only legal fix, bad credit report repair, or credit score improvement involves negotiating with creditors, disputing negative items on your credit report with the credit bureaus, correcting inaccurate information on your credit reports and working to establish a good credit history. Any company which claims to be able to erase bad credit may be trying to rip you off.

The previously mentioned company collected money up to fix bad credit report; repair bad credit reports and erase bad credit. This is a classic tip-off for a credit repair scam; how to avoid being a statistic: the only fees you should pay up front are those meant to retain a law firm. A law firm is only allowed to represent you, once a retainer has been paid. Whenever fees are disclosed by companies which offer a bad credit fix, bad credit report repair or any other credit counseling services, be sure to read the fine print.

The company investigated by the Federal Trade Commission eventually made restitution to some of the victims of the credit repair scam; how to avoid being a statistic: read the fine print. Find out exactly what services are offered, how it works, is it legal, what is the refund policy and how long it takes. Find out if the company offering the credit repair fix, bad credit report repair or other services is a member of the Better Business Bureau. Find out how long they have been in business and if they have satisfied clients. In this way you should be able to avoid the credit repair scam; how to avoid being a statistic: follow this advice.