Have you seen ads about repairing your credit that offer you a fresh start by clearing any bad credit you have? Be cautious of these.
Here are a few things to watch out for with credit repair companies:
- Don’t work with a company that requires you to pay upfront, or tells you not to contact a credit reporting company directly
- Be cautious of companies that ask you to dispute information in your credit report that is accurate – that’s fraud!
- Avoid working with a company that encourages you to give false information on a credit application – that’s fraud as well!
What about companies that promise a new credit identity?
These companies will ask you to commit fraud in some way. For example, they’ll provide you with a CPN (a credit profile number), which looks like a Social Security number, and then encourage you to use that number to apply for credit in the future. Or, they’ll suggest you apply for an EIN (Employer Identification Number), which is used by businesses to report financial information to the IRS and Social Security Administration. Again, they will ask you to use that number to apply for credit.
How do they get a CPN for you?
In most cases, a CPN is a stolen Social Security number – usually from children or those who are dead. So, when you use a CPN instead of your Social Security number to apply for credit, you’re involved in identity theft. And that may lead to more issues than just having poor credit – you’ll be in legal trouble!
Greater Texas & Aggieland Credit Union have established a program that will help our members re-establish credit. It involves a four-step program, which allows a gradual rebuilding of credit. Click here , for more information.
Information is for informational purposes only and is not intended to provide legal or financial advice.