Warning signs of credit score scams, specifically those targeted at repairing a person's credit, include having to pay in advance, the promise of having negative information deleted and being asked to assume a new credit identity, according to the Better Business Bureau. To avoid becoming a victim of such a scam, a person should look over the contract and cancel the service if anything looks suspicious.
Individuals often targeted by credit repair scams include those with poor credit who are attempting to buy a home, lease a car or get a job, notes the Better Business Bureau. The scammer informs the person he can have his past negative credit information disappear, such as late payments and even bankruptcy. However, as long as that negative information is correct, it cannot be removed. Another warning sign of a scam is the credit repair company offering the person someone else's Social Security number or a new ID number, both of which are illegal to use.
The contract for a legitimate credit card repair company usually has the time period, price, services rendered and all other terms of the business agreement, according to the BBB. In most cases, the services, and the contract can be cancelled within three days. It's best to contact the state BBB to ensure the credit repair company is legitimate and to determine if everything in the contract is legal.