What Should I Know about Credit Fraud?

Unfortunately, dishonest people often target and take advantage of those who are struggling to make ends meet. If you’re encountering troubles paying your bills or facing foreclosure, you may be contacted by unscrupulous individuals and companies. Through public information, they can find details of your financial life you may have thought private.

If you receive unsolicited offers—such as loan modification offers or “easy ways” to repair your credit—be wary. Be especially suspicious if the deal involves a fee or up-front payment.

There are many things you can do to improve your credit on your own, for free or at a low cost. Companies that offer seemingly similar services often charge a lot of money, and they may not provide quality service (or any service). They also can make your credit situation worse than it was by using precious time that you could use to improve your credit history.

The Federal Trade Commission’s article Credit Repair: How to Help Yourself provides sound information to improve your credit history on your own.

Keep in mind these tips:

• If an offer sounds too good to be true, it probably is.
• Always know who you’re dealing with. Carefully research companies and individuals who will handle your money before you turn it over.
• Don’t be pressured into making a decision quickly. If the deal is genuine, it will be around tomorrow—after you’ve had a chance to think about it and research it.
• If you receive an offer by phone, ask that information is mailed to you.
• Contact the company yourself via a phone call or an Internet address you type in. Don’t click on links to company sites contained in an e-mail message. These may be phony “phishing” sites set up to look like a legitimate company but actually designed to fraudulently get your money.
• Don’t pay what you can’t afford to lose.
• The greater the potential reward, the greater the risk.