How to avoid credit repair scams

KANSAS CITY, Mo. - Trying to dig out of debt and repair your credit score? It is on many lists of New Year’s resolutions. If so, the government’s website www.usa.gov warns consumers to be on the lookout for credit repair scams.  

When it comes to a "fee based" credit repair company, the website clearly states that you should beware.  Many of the services are illegal. Others services can be done on your own for free. 

The website recommends keeping several things in mind before you sign a contract.

• The company must give a copy of the "Consumer Credit File Rights under State and Federal Law".
• The company cannot do anything until after you sign the contract, then complete a three day waiting period.  You can cancel during that time without paying fees.
• It is illegal to erase timely or accurate information in your credit history.
• The company cannot charge you until it has finished the service. 

You can solve many of your own credit issues by requesting a free copy of your credit report or working with creditors to dispute if something is inaccurate.