If you are struggling with a low credit score or negative information on your credit report, you may be considering working with a credit repair service. While many credit repair services are legitimate and can be a helpful resource, there are also a number of scams that you should be aware of. Here are a few credit repair scams to avoid:

1. Services that promise to remove all negative information from your credit report

No credit repair service can remove all negative information from your credit report. While it is possible to dispute errors on your credit report and negotiate with creditors to remove some negative information, there are certain types of negative information, such as bankruptcies and tax liens, that cannot be removed. Be wary of any credit repair service that promises to remove all negative information from your credit report.

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2. Services that charge upfront fees

Legitimate credit repair services should not charge upfront fees. Under the Credit Repair Organizations Act, it is illegal for credit repair services to charge fees before they have completed their services. If a credit repair service is asking for an upfront fee, it may be a scam. Instead, consider working with a credit repair service, like Credit Bounce, that offers a free service without any upfront fees.

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3. Services that ask you to create a new credit identity

Some credit repair scams may ask you to create a new credit identity by applying for an Employer Identification Number (EIN) or a new social security number. This is a form of identity theft and is illegal. Instead of creating a new credit identity, focus on improving your credit score by paying your bills on time and disputing any errors on your credit report.

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4. Services that ask you to dispute all negative information on your credit report

While it is important to dispute errors on your credit report, you should not dispute all negative information on your credit report. Negative information that is accurate, such as missed payments or late payments, cannot be removed from your credit report and disputing it may not be helpful. Instead, focus on disputing errors and working to improve your credit score by paying your bills on time and keeping your credit card balances low.

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5. Services that claim to be affiliated with the government

Some credit repair scams may claim to be affiliated with the government or a government agency. Be wary of any credit repair service that claims to be affiliated with the government or that uses official-sounding language in their marketing materials. The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) are two government agencies that provide information on credit repair and can help you identify legitimate credit repair services.

If you are considering working with a credit repair service, it's important to do your research and be cautious. Be wary of any service that makes unrealistic promises or charges upfront fees. Instead, consider working with a reputable credit repair service, like Credit Bounce, a free credit repair service that can help you identify and fix errors on your credit report and improve your credit score.