The Federal Trade Commission (FTC) alerts consumers against trying to get credit repair service from illegal credit repair companies. Yes, experiencing financial crisis can make any person prone to fraud and rip-offs. Knowing the signs of fake credit repair agencies may help you stay away from being a victim of credit repair scams. What are the indications of a fake credit help service?

Upfront payment. A legal credit repair or credit counselling agency will never question for an advanced payment prior to providing service since that is an infringement of the laws and regulations stipulated in the Credit Repair Organizations Act.

Advises you to lie or use fake information. If your credit counselor recommends that you violate the law, then this is a sure sign that you are dealing with a fake agency. For example, you may be advised to use a different Social Security Number or replace your SSN with your EIN (Employer Identification Number) to switch your credit identity.

Keep in mind that lying or using fake information just to be free from your all your responsibilities will never solve the problem instead, it will only worsen the situation you are in. In the long run, you will find yourself in an even deeper problem than you are in at this time. Furthermore, you can be charged and prosecuted for the crime of fraud.

Promises to instantly fix your credit history. If the debts in your credit report are right, it is impossible for you or any of the three credit report agencies to remove those charges. The only solution for you to restore your excellent credit history is to pay your creditors.

You are not told about your rights. A genuine credit counselor must first of all present to you your consumer rights based upon the Honest Credit Reporting Act (FCRA). Before signing up for a credit repair, you should be given a copy of the Consumer Credit File Rights Under State and Federal Law. Make sure that your agreement clearly stipulates the precise service you will be provided, the approximated time frame before you can see result, and all the fees that you are expected to pay.

You are not given practical advice. There are many steps which can be done to help yourself get out of terrible credit without spending a cent. As an example, you are eligible to get a copy of free credit report if you reckon you have been a victim of fraud or ID theft; if you have been previously refused credit or employment; or if you are without a job and intend to look for a new one within the next 60 days.

You can also obtain a copy of your free credit report by checking out www.annualcreditreport.com. The website is backed up by the three credit report agencies— Equifax, Experian, and TransUnion. You may also call up 1-877-322-8228 or complete the Annual Credit Report Request Form and send it to:

Annual Credit Report Request Service P.O. Box 105281