Any consumer who has tried to borrow money, apply for credit or even rent an apartment most likely understands the importance of a good credit score. There is so much emphasis on this three digit number that entire talk shows, books and even products for credit repair are centered around it. While it is in fact true that a good credit score will get you approved for more lines of credit with more favorable terms than someone with no credit or bad credit, there is an entire industry making money from credit score scams. To ensure you do not fall victim to credit score scams, consider the following information.
Credit Bureaus Work With Creditors
[ad#Left-Align Content Ad]There are three main credit bureaus which collect information provided by creditors and use it to create your credit report. The information provided by creditors is also used to calculate your credit score. The problem with this scenario occurs when the wrong information is reported by creditors or an error is made in the reporting. When this happens, a consumer may see a lower credit score or mistakes on their credit report which lead lenders to question their credit worthiness. If a consumer is diligent in reviewing their credit report, they will notice these errors, however the process of correcting this information is often long and frustrating. Since the credit bureaus work for creditors, it becomes the consumers responsibility to provide indisputable proof that an error has been made. In the end, many consumers simply give up and accept the errors as something that they have to live with because it is too difficult to correct.
Ripping Off Consumers
Sadly, with so much riding on where your score falls on the credit rating system, many consumers are more than willing to pay for help to improve that magic number. Each credit bureau provides their own credit score which vary from the “standard” FICO score. Consumers are often vulnerable to advertisements and offers for a “free” credit score when in reality they are signing up for some type of subscription service. After receiving their credit score which may or may not be close to the “real” credit score viewed by lenders and other creditors, these unsuspecting subscribers find themselves charged for a monthly service. This has become such a problem that a lawsuit is pending to address the issue.
Credit Repair Kits
[ad#Left-Align Content Ad]Another issue consumers are faced with when trying to view, understand or repair their credit score are credit repair kits that simply do not work. There have been scams uncovered where the credit repair kits being sold do nothing to help improve the credit score of the buyer, in fact sometimes the score is even lower. Naturally, any subscription for a credit repair program will attempt to sucker consumers into a longer period of paying monthly fees when in fact there is nothing being done to repair the credit score in the first place.
The Bottom Line
At the end of the day, the most important thing a consumer can know about credit scores and improving credit scores is that it can be done without paying for a service or subscription. There is plenty of information available to consumers, free of charge, that helps consumers understand scoring systems as well as how to repair your credit score on your own. Before signing up for a trial period, free or otherwise, spend some time researching the topic to ensure you are not the next victim of a credit score scam.