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You’ve seen the rising prices, read headlines about layoffs and heard whispers of a recession in the air. The Federal Reserve also reports people are falling behind on more loan payments, although it’s happening at lower rates than before the pandemic.
A missed payment on a loan or credit card can wind up on your credit reports and hurt your credit scores, making it more difficult and expensive to get a new loan. In some cases, a lender will decline to lend money to you at all.
Consumers may turn to credit repair companies for help. The companies try to improve your credit scores by disputing negative information on your credit reports, and your scores could go up if the negative marks are changed or removed.
Credit repair can be helpful, but people tend to turn to credit repair when they need fast help—perhaps right before buying a new car or house. Unfortunately, you’re also vulnerable when you’re under duress, and some credit repair companies take advantage of this to scam unwitting consumers.
How Do Some Credit Repair Companies Scam Consumers?
A well-intentioned credit repair company might uncover errors that you miss, and they might be able to get negative information that’s largely accurate removed from your credit report because of technicalities in the reporting or dispute…
