How It Works
A company or individual promises to "fix" your credit score or guarantee you a loan or credit card despite a poor credit history, for an upfront fee. After payment, they either do nothing, or perform tasks you could have done yourself for free, while your credit score remains unchanged.
Real Example
An ad promises "Guaranteed personal loan even with low CIBIL score — pay ₹2,999 processing fee first." After payment, no loan is disbursed and the company stops responding.
Red Flags 🚩
- Guarantee of loan approval or credit score improvement "regardless of history"
- Upfront fee required before any service is performed
- No clear, verifiable physical office or RBI/NBFC registration
- Promises that sound too easy compared to standard bank lending processes
Protection Steps 🛡️
- No legitimate lender guarantees approval before checking your credit history.
- Legitimate credit repair involves disputing errors yourself for free via credit bureaus.
- Never pay an upfront fee for a loan that hasn't been disbursed yet.
- Verify lender registration through the RBI's list of registered NBFCs.