Beware Of Credit Repair Scams

It’s likely you’ve heard about people who have sought out credit repair companies for help to improve their poor credit, but who have instead been cheated by credit repair scams. Before you understand what pathway to take to avoid being ripped off by such unscrupulous people|these scammers|these crooks}, you must know how they function.

They know that those who find themselves suffering financial hardship are in such desperate straits as to grasp at whatever is told them, hoping these fraudulent companies will really be able to improve their credit score, so they can regained their serenity. They in many cases are so disheartened by the system, which is downright cruel to those who suffer from credit problems, that they’ll take any measures to get it fixed.

Most people looking for help are thinking about declaring bankruptcy. It is these who are most likely to fall prey to credit repair scams.

And why is this? Because they want fast results, and do not know that fixing their credit takes at least 6 – 12 months. Very often, these people feel that they don’t have much time, and unless they act right now, it will be too late. Ironically, when they sign up with such unscrupulous agencies instead of improving their financial situation, they will find themselves in even worse financial straits, since they’ve been chasing a mirage.

Here are the warning signs to avoid credit repair scams:

1. They promise too good to be true results – lots of these agencies promise they will have all the negative remarks removed from your credit report. They will also guarantee that your score will increase in a very short time.

They try to accomplish this by disputing every negative trade line in your credit repor. The credit reporting agencies may initially remove some or most of the disputed items that can’t be verified within 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.

But if the 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 urge you to violate the rules – they use illegal means, such as using the identity of others to improve credit, by offering to give you a new SSN that has no bad credit record, so that you can “start life afresh.”

Beware! 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 ask for full payment up front – most of the credit repair scams ask for payment in full up front. This makes sense, because they know that sooner or later you will discover that they cannot really remove bad credit or improve your credit score as they had promised. And at that point, you would refuse to pay.

It’s entirely possible to avoid credit repair scams. Just keep in mind that no matter how desperate your situation, look out for the red flags!