Avoid Credit Repair Scams
It’s likely you’ve heard lots of stories about people who go to credit repair companies for assistance to improve their poor credit, but to have instead been taken in by credit repair scams. In order to understand what must be done to avoid being ripped off by such unscrupulous people|these scammers|these crooks}, you must learn how they function.
They’re all too aware of that people who find themselves up to their neck in debt are so desperate as to grasp at whatever is told them, in the hope that these fake agencies will really be able to improve their credit score, so they can get their lives back. They will often be so disheartened by the system, which is downright cruel to people who suffer from credit problems, that they’ll take any measures to get relief.
Most people who seek out help near bankruptcy, or at least contemplating it. These are the people who are most likely to fall prey to credit repair scams.
Why is this? Because they are impatient, and do not know that fixing their credit requires at minimum 6 – 12 months. Very often, they feel that they don’t have much time, and unless they take fast action, it will spell future disaster. Ironically, when they sign up with such unscrupulous agencies rather than getting themselves rid of debt, they will find themselves in even worse financial straits, because they’ve been fooled into chasing a mirage.
Beware of these red flags to avoid credit repair scams:
1. They promise miracles – many of these agencies promise they will have every negative account removed from your credit report. They will guarantee you that your credit score will improve within the next 2-3 months.
They attempt to do this by disputing every adverse accounts in your report. The credit bureaus may initially remove some or most of the disputed items that can’t be verified within the required 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.
But if the bureaus is later able to verify the negative items, they will be back on your report – plus you will have earned the reputation of being a hustler!
2. They play fast and loose with the rules – they actually break the law with their tactics, such as using other people’s identity to increase your overall credit, by offering to give you a new SSN, so that you can “start from scratch.”
Warning! Such tactics could put you in hot water. It’s not only against the law to take up a “new” SSN, the number could have a police record attached to it, or any such things that will be far worse that having bad debt.
3. You demand full payment up front – most of the credit repair scams are characterized by the fact that they ask for payment in full up front. This is understandable, because they know you will find out that that they can’t deliver as they had promised. And at that point, you won’t pay them.
It’s entirely possible to avoid credit repair scams. Just don’t forget that no matter how desperate you become, don’t ignore the warning signs!