Transform Credit is a credit repair corporation that claims to assist clients in improving their credit scores and creditworthiness. Credit repair, credit monitoring, identity theft protection, and debt settlement are some of the services provided by the company. Concerns and complaints have been raised about Transform Credit’s business practices, prompting some to question whether it is a scam or a legitimate business.
According to Better Business Bureau (BBB) information, Transform Credit has the lowest attainable rating of “F.” In the past three years, the BBB has received 14 complaints against the company, of which 11 have been resolved in the past year. While this may appear to be a small quantity, it is important to note that Transform Credit was only founded in 2018.
The plurality (11) of the fourteen complaints filed with the BBB against Transform Credit involved issues with the company’s products or services. Other complaints concerned invoicing and collection practises (2) as well as advertising and sales practises. (1). Numerous BBB complaints allege that Transform Credit did not fulfil its promises to improve credit scores and eliminate negative information from credit reports.
To determine if Transform Credit is a fraud, it is essential to examine the company’s track record and customer reviews. The Better Business Bureau (BBB) has awarded Transform Credit the highest possible rating of A+. In the past three years, the BBB has received 62 complaints about Transform Credit, the majority of which involved issues with the company’s services.
Numerous complaints lodged with the BBB against Transform Credit allege that the company was unable to negotiate settlements with creditors or that the settlements negotiated were not as advantageous as promised. Other complaints included difficulties with customer service, such as inability to contact representatives and delays in paperwork processing.
However, it should be noted that Transform Credit has satisfactorily resolved a significant number of consumer complaints filed with the BBB. In addition to improving its business practices, the company has implemented a new online portal for customers to monitor their progress and communicate with company representatives.
Although the complaints against Transform Credit are concerning, it is essential to keep in mind that debt settlement is a complex and frequently challenging process. Not every creditor is prepared to negotiate settlements, and there is no assurance that the negotiated settlements will be as advantageous as promised. Additionally, debt settlement can have a negative effect on credit scores, and consumers may still be required to pay taxes on forgiven debt.
Before working with Transform Credit or any other debt relief company, it is essential to conduct research on the risks and benefits of debt settlement. You should also consider other alternatives, such as debt consolidation or credit counseling, which may be more suitable to your financial situation.
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Despite the fact that complaints have been lodged against Transform Credit, the company appears to be a legitimate debt relief organisation that operates within the parameters of federal law. Nonetheless, as with any debt relief company, consumers should be aware of their rights and ensure that the company follows appropriate business practises. Consumers who believe that Transform Credit or any other debt relief company has treated them unjustly should file a complaint with the appropriate regulatory agency.
Transform Credit Reviews and Complaints
| BBB accredited | No |
|---|---|
| BBB rating | NR |
| BBB customer reviews | 1.59 out of 5 stars, based on 106 customer reviews |
| Trustpilot Score | 4.6 out of 5 stars, based on 789 customer reviews |
| Customer reviews verified as of | 09 March 2023 |
Transform Credit gets mostly positive reviews on Trustpilot. Satisfied customers praise the lender’s customer service team, smooth application processing and quick funding. However, some customers were unhappy to discover that their cosigner’s accounts received the loan amount instead of their own.
But the BBB website paints another picture. There’s currently an alert for a pattern of customer complaints in four categories:
- Customers getting approved for loans they didn’t apply for
- Credit checks without prior consent
- Getting signed up for the credit-builder program without authorization
- Added as cosigner without consent
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Is Transform Credit legit?
Yes. Transform Credit is licensed to offer loans in nine states. It’s headquartered in Chicago, Illinois, and it has a customer service phone number.
Transform Credit’s privacy policy is listed on its website and states how it processes and stores your information. It also uses encryption to protect any information you and your cosigner submit during the online application.
FAQ
Why is the money paid out to my cosigner rather than me?
Your cosigner gets the money to ensure they know about the loan. Your cosigner can transfer the funds to you in any way you’d like immediately after receiving them.
What if my cosigner has another Transform Credit loan they’ve cosigned?
You won’t be able to use them as a cosigner if the other loan is still open. To qualify, your cosigner must not already have an open loan with Transform Credit — as a borrower or cosigner.
What credit score do you need for transform credit?
Transform Credit does not have a minimum credit score requirement for its debt settlement services. However, the company typically works with consumers who have significant unsecured debt and are struggling to make payments.