Credit Repair Scams – Avoiding Trouble
You’ve probably heard stories of people who have hired credit repair organizations for help to improve their poor credit, but have instead been ripped off by credit repair scams. To learn what you need to do to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must know how they function.
They know that those who find themselves up to their neck in debt are so desperate as to believe anything that is told them, in the hope that these fake agencies really can deliver on their promises, so they can reclaim their lives. They in many cases are so disheartened by the system, which is downright cruel to those who have poor credit, that they’ll do anything whatsoever to get it fixed.
Most people looking for help are close to bankruptcy, or at least contemplating it. These are the people who are the easiest targets of credit repair scams.
Why is this? Because they feel a sense of urgency, and don’t realize that fixing their credit score can take up to 12 months. Very often, these folks feel like time is running out on them, and unless they take some urgent and drastic steps right now, it will spell future disaster. Ironically, when they sign up with such unscrupulous agencies instead of getting themselves rid of debt, they will find themselves worse off than ever, because they’ve been fooled into chasing a mirage.
Here are some red flags so you can avoid credit repair scams:
1. They promise miracles – many of these agencies promise they will get every negative account deleted from your credit report. They will guarantee you that your credit score will improve in a very short time.
They attempt to do this by disputing everything negative in your report. The credit reporting agencies may initially remove some or most of the disputed items which they are unable to verify within 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 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 improve credit score, by offering to give you a new SSN that has no bad credit record, so that you can “start life afresh.”
Danger! Such tactics will only land you into more 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 much worse than bad credit.
3. They ask for full payment up front – a good many credit repair scams ask you for their fees in full up front. This makes sense, because they will be worried that you will soon discover that that they can’t deliver as quickly as they claimed. And at that point, you would refuse to pay.
It’s entirely possible to avoid credit repair scams. Just remember that no matter how desperate you become, don’t ignore the warning signs!
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