Credit Repair Scams – How to Stay Safe
I’m sure you’ve heard lots of stories of people who have gone to credit repair agencies for help to improve their low credit score, only to fall prey to credit repair scams. In order to understand what actions must be taken to avoid being ripped off by such unscrupulous people|these scammers|these crooks}, you must know how they function.
They’re betting that people who are up to their neck in debt are in such desperation as to swallow anything that is told them, in the hope that these fake agencies can really improve their credit, so they can reclaim their lives. They in many cases are so disheartened by the system, which is downright cruel to people who have problem credit, that they’ll take desperate measures to resolve their problems.
Most of those seeking help are ready to declare bankruptcy. It is these who are the most easily taken in by credit repair scams.
Why? Because they want fast results, and are unaware that solving their credit problems can take up to 12 months. Very often, these people feel like time is running out on them, and unless they act quickly, 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.
Heed these warning signs that could indicat credit repair scams:
1. They promise miraculous results – many of these agencies promise to get every negative trade line deleted from your credit report. They will guarantee you that your credit score will improve within 2 or 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 credit bureaus can verify the negative accounts at a future date, they will be back on your 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 other people’s identity to increase your overall credit, by offering to give you a new SSN, so that you can “start life afresh.”
Look out! Such tactics could put you in hot water. Besides the fact that it’s 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 much worse than bad credit.
3. They require all their fees be paid up front – these credit repair scams ask you for full payment before rendering their services. This is understandable, because they will be worried that you will soon discover that they cannot really remove bad credit or improve your credit score as fast as they had promised. And at that point, you won’t pay them.
Know that you can avoid credit repair scams. Just don’t forget that no matter how desperate your situation, look closely for the warning signs!
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