Credit Repair Scams - Avoid Being Taken
You’ve probably heard lots of stories of people who go to credit repair organizations for assistance to improve their credit score, but to have instead been taken in by credit repair scams. To learn what must be done to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you need to understand how they function.
They know that those who find themselves suffering financial hardship are in such desperation as to believe anything that is told them, hoping these fraudulent companies will really be able to improve their credit score, so they can regained a peace of mind. They in many cases are so disheartened by the system, which is downright cruel to people who have problem credit, that they’ll do anything whatsoever to get it fixed.
Most people looking for help are ready to declare bankruptcy. It is these who are most vulnerable to credit repair scams.
Why? Because they feel a sense of urgency, and are unaware that improving their credit takes at least 6 - 12 months. Very often, they feel like time is running out on them, and unless they take action right now, disaster awaits them in the future. Ironically, when they sign up with these company’s instead of improving their financial situation, they will lose whatever little money they still had, since they’ve made the mistake of chasing a mirage.
Here are the warning signs that alerts you to credit repair scams:
1. They promise miracles - these less than honest companies promise they will have all the negative remarks removed from your credit report. They will guarantee you that your credit score will improve within 2 or 3 months.
They try to make this happen by disputing every negative trade line in your report. The bureaus may initially remove some or most of the disputed items that they can’t verify within the required 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.
But if the bureaus can verify the negative accounts at a future date, they’ll end up back on the report - plus you will have earned the reputation of being a hustler!
2. They tempt you to bend the rules - they actually break the law with their tactics, such as using the identity of others to improve credit score, by offering to give you a new SSN that has no bad credit record, so that you can “start life afresh.”
Beware! Such tactics can land you in a lot of trouble. Not only is it illegal 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 - these credit repair scams are characterized by the fact that they ask for their fees in full up front. This makes sense, because they know you will find out that that they can’t deliver as quickly as they claimed. And at that point, you won’t pay them.
Know that you can avoid credit repair scams. Just keep in mind that no matter how desperate you become, look closely for the warning signs!