How can you avoid credit score scams? These are 7 key ways

livemint.com:

Avoiding credit score scams call for an extreme sense of caution. These are a number of steps that one can take to stay safe. First and foremost, one should share only personal and financial information with the reputable sources. 

For example, one Ajay Sharma has a poor credit score of 550 and he now wants to improve it in the next one year since he plans to raise loan to buy a house.

He gets a link to an organisation that offers a guarantee of credit score improvement by 200 within three months. This sounds too good to be true. But the catch is that he is asked to pay ₹20,000 in advance. So, the best thing that Ajay should do is to stay away from such an offer.

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And in case you are not sure about a company or website that offers credit score services, you should make sure to research it thoroughly. It is recommended to look for reviews, ratings, and any complaints that are lodged against it.

Use official channels: Stick to official channels for obtaining your credit score, such as authorised credit bureaus of Cibil, Equifax and Experian. These agencies provide legitimate and accurate credit reports.

Beware of unsolicited offers: Be careful of unsolicited offers for credit score checks, especially if they are sent via phone calls, email or text message. Fraudsters tend to use such methods in order to lure gullible victims.

Check your report: You should monitor your credit report on a regular basis to detect any unauthorised activity or errors. You are entitled to a free credit report from each of the major credit bureaus once a year.

ALSO READ: How does foreclosure of loan impact your credit score?

Keep guaranteed results at bay: