How to Spot Credit Repair Scams

The credit repair industry has legitimate companies — and plenty of scams. Here's how to tell the difference before you spend a dime.

Red Flags of a Credit Repair Scam

They guarantee specific results. No legitimate company can guarantee a specific score increase or promise to remove accurate negative items. If they say "we'll raise your score 200 points" — walk away.

They ask for payment upfront. Under the Credit Repair Organizations Act (CROA), credit repair companies cannot charge you before they've completed the services they promised.

They suggest creating a new identity. Some scammers suggest applying for an Employer Identification Number (EIN) to use instead of your Social Security Number. This is illegal — it's called credit file segregation and it's fraud.

They can't explain what they do. Legitimate companies explain exactly what they do: dispute inaccurate items, send creditor letters, monitor your reports. Vague promises of "secret methods" are a scam.

They don't provide a written contract. CROA requires credit repair companies to provide a written contract that includes your right to cancel within 3 days.

What a Legitimate Credit Repair Company Does

• Provides a written contract before starting work
• Discloses your 3-day right to cancel
• Charges only after completing services
• Explains exactly what disputes they will file and why
• Never guarantees specific results
• Works within the law — no "secret techniques"

CreditGM's CROA Commitment

CreditGM operates fully under the Credit Repair Organizations Act. We provide written contracts, honor the 3-day cancellation right, charge monthly (not upfront), and only dispute items we genuinely believe are disputable. We never promise results we can't deliver — only honest, legal, professional advocacy for your credit rights.