Individuals with bad credit histories may be looking for a fast fix to improve their credit reports. Many services promise to clean up a credit history overnight, but may not deliver on their promises or worse, may push a consumer to commit fraud through unethical business practices.
If a company promises to change all information on one’s credit report, even factually accurate negative information, it’s a good tip-off that the service is a scam, according to the Federal Trade Commission (FTC). If the company wants a payment up-front without providing any services, it is reportedly another good sign that the company is not being straightforward with its consumers.
The worst offense is perhaps when the company advises a consumer to invent a “new” credit identity. If a consumer takes such advice, he may be guilty of fraud, according to the FTC.
A bad credit history can be fixed with time and effort, and a bad credit score does not have to be an impediment to a consumer responsibly using credit for necessities. Drivers who would like to purchase a vehicle but worry about their bad credit history can always apply for a bad credit auto loan to make their purchase affordable.