With the number of credit repair agencies ever increasing in the market, consumers are confronted with the dilemma of choosing a service that isn’t a scam. To avoid being victimized by such credit repair scammers, the best defense one can have is accurate information. By being aware of their strategies and propagandas, consumers can stay away from credit repair agencies that are only after their money.

For instance, have you heard about the file segregation technique? Data manipulation or file segregation is one of the most common strategies used to mislead people especially those in need of help with their credit. Since a person with bad credit has derogatory marks in his credit report, some agencies may try to persuade you to manipulate or change some of the data to make your credit seem faultless. How is this done?

Some “fake” credit repair agencies would advise their clients to apply for an Employer Identification Number (EIN) from the IRS. The EIN looks similar to a Social Security Number but these numbers are supposed to be used only by businesses to report about their financial information. These numbers are not meant to replace a person’s SSN.

Continue reading: Credit Repair Agencies Scams Explained

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