Do you need money but are having trouble recovering from bad credit? There are many businesses out there ready and willing to transform your credit score from a 300 to a strong 750; well, for a small price. It’s easy to be enticed by credit repair companies. Their promises introduce a glimmer of hope. Promises of removing bad information from our records or increasing our score all together can be very enticing, but it can also be more harmful to your credit score if you don’t research who you’re doing business with.

If you are in need of money and you do have bad credit, there are reputable companies that you can visit to find installment loans for bad credit. Consider MaxLend as an alternative to payday loans. There are minimal eligibility requirements, fast-funding and flexible repayment. You will need a social security number, an active checking account and a verifiable source of income.

The following list will include details about what to look for in a company that is most likely looking to scam you, compared to an actual government-approved credit repair company.

It should be noted that all credit repair companies are to be operated under the laws of the federal government; therefore, everything they offer or suggest must correlate to the law.

No report of your rights

One of the most obvious moves by a scam company is their failure to provide you with a Consumer Credit File Rights Under State and Federal Law. This document essentially allows you to read and understand all your rights. However, a scammer won’t want you to know your rights. They will use an excuse such as, “it’s not necessary,” or “it’s basic stuff.” These are your rights. Be careful and ask questions.

No copy of your contract

Scammers are itching to get you to sign documents that break the law and favor them. If you are asked to sign a contract but are not given a copy, then this would be a huge red flag as to the credibility of the company. Now, some scammers might provide you with a copy; however, it will include unnecessary information in the attempt to overwhelm you. What you need to look for in a contract is if the following is included: the amount charged, details about their service, date of completion, the location of the company, and a statement letting you know that you can cancel the service within three days.

No upfront fees

Federal law states that no payment shall be made before a service has been accomplished. Therefore, if a credit repair company requires payment beforehand, just walk away or point to the law as your right to withhold payment until the service has been done. The practice of upfront payment is natural in the business world. At times, it just might be that they are not familiar with this section of the law.

“New” identity

Some scammers are getting bold to the point of suggesting to customers that they can change all their government information. This would include a new Social Security number, a new federal employer identification number, and other government-issued information. This attempt from them is to “send” all your good credit to one identity in order to grow it into a high credit score. Needless to say, but this practice is 100% illegal.

No rights

Scammers love to take your rights away, so they will formulate a contract that does just that. They will comment that if you waive your rights, they will be able to better do their service. There is no proof of suggestions from any attorney that this would be the case. Never sign away your rights.

So, after all this, you might feel a little skeptical about these companies. Rest assured that there are plenty of good companies out there who are passionate in assisting people with low credit reports. Here are a few good signs of a legit credit repair company.

Having a conversation

A legit company will sit down and consult with you about your situation, what route would be best and what can be reasonably be done within their time frame. A company is who straightforward with you about their prices, expected results, and legal information is one to be trusted.


As stated before, a legitimate company will not make extravagant promises about the results that they can bring you. In actuality, a company will discuss only the routes that will produce the most realistic results for your situation.

Knowing your rights

Finally, a legitimate company will have no problem showing you why their services trump the rest of the competition, as well as showcasing their data to back it up. You could always request a review from the government to see if a company is legitimate. They will happily provide you with any non-confidential information you desire.