Credit repair is a controversial word, since you can’t repair your credit, you can just reconstruct it. Simple derogatory details are deleted on your loan report; it will take 6, 7, or even 10 years in certain provinces to falls off from your loan report. Be careful while repairing your credit.
The best way to “fix” your report is to build it up with a better credit background. This means you settle your loan on time every month and according to your agreement. You can either restore the credit yourself or use a non-profit credit advisory agency to provide free advice on credit repair.
Credit Repair Scams vs. Loan Schemes
Credit repair agencies erase derogatory details from your credit report and repair your credit, thus improving your credit score for a fee. You profit from the fact that many Canadians do not realize that you cannot delete specific detail (good or poor) from your credit report.
Loan schemes sell you credit repair, but “give yourself a loan” on paper, even if you do not collect the funds in actuality, but you have to make payments! You make monthly payments or bi-weekly loan payments that you never get, so they say that your loan payments would favorably reflect your credit score and thus benefit.
However, your ranking does not improve and your bank balances continue to subtract money. But these firms warn you that they would report poorly on your credit report. if they do so, your credit score might get worse. You are in danger of suspending payments.
Here are a few instances that help you in just keeping away from such scam companies:
- Request payment upfront
Companies who ask you for upfront payments are completely against the law. For instance: A guide or tablet never works may be given to you and the costs and/or credit fees are then claimed. Be aware of that.
- Offering Instant Approvals
Legitimate companies are not able to provide instant approval. Firstly, the present financial condition and credit records need to be comprehended. Scammers don’t care — they just want to get you to sign up quickly for your money.
- Request Payment by sending Gift Cards
What an odd way to get a service charge, right? Sadly, more people are being duped like yesterday’s wiring money scams. The scammers will order you to buy gift cards and give them the serial number and PIN on the back. Keep this in mind: gift cards are a present, not a means of payment. Any enterprise demanding a gift card is a scammer.
Besides that, they can Guarantee you to remove bad credit score or pressurize you with their sales tactics, and do not provide a Transparent Contract. All they are scammers.