Credit Repair Scams - Do Your Research
No doubt you’ve heard stories of people who have sought out credit repair agencies for help to improve their low credit score, but have instead been ripped off by 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 need to understand how they function.
They know that people who find themselves over their heads in debt will be desperate enough to swallow whatever is told them, in the hope that these fake agencies will be able to solve their financial problems, so they can reclaim their lives. They will often be so disheartened by the system, which is downright cruel to people who suffer from credit problems, that they’ll do anything to resolve their problems.
Most people looking for help on the verge of declaring bankruptcy. These are the people who are most likely to fall prey to credit repair scams.
The reason? Because they are impatient, and are unaware that the process of repairing a credit report takes at least 6 - 12 months. Very often, they feel that they don’t have much time, and unless they take fast action, disaster awaits them in the future. Ironically, when they sign up with these company’s rather than ridding themselves of debt, they will find themselves in even worse financial straits, since they’ve made the mistake of chasing a mirage.
Heed these warning signs that could indicat credit repair scams:
1. They promise miracles - 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 within the next 2-3 months.
They try to accomplish this by disputing every negative trade line in your credit repor. The bureaus may initially remove some or most of the disputed items that they can’t verify within 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.
But if the credit bureaus is later able to verify the negative items, they’ll end up back on the 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 increase your overall credit, by offering to give you a new SSN that has no bad credit record, so that you can “start your financial life over.”
Danger! 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 before rendering their services. This is understandable, because they realize that you will eventually find out that that they can’t deliver as quickly as they claimed. And at that point, you would understandably be reluctant to pay their fees.
In conclusion, credit repair scams are avoidable. Just don’t forget that no matter how desperate you become, look out for the red flags!