Credit Repair Scams – Danger
I’m sure you’ve heard about people who have hired credit repair organizations for assistance to improve their credit report, only to be ripped off by credit repair scams. To learn what actions must be taken to protect yourself against such unscrupulous people|these scammers|these crooks}, you must learn how they function.
They know that those who are up to their neck in debt will be desperate enough to grasp at anything they are told, hoping these fraudulent companies will be able to solve their financial problems, so they can get their lives back. They are often so disheartened by the system, which is downright cruel to those with a poor credit score, that they’ll do anything to get relief.
Most of those who seek out 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 are unable to internalize the fact that the credit repair process requires at minimum 6 – 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 rather than ridding themselves of debt, they will find themselves in even worse financial straits, because they’ve been chasing a mirage.
Beware of these red flags so you can avoid credit repair scams:
1. They promise the impossible – many 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 everything negative in your report. 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 bureaus verifies the items at a later date, they’ll end up back on the report – plus you will have earned the reputation of being a hustler!
2. They play fast and loose with 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 Social Security Number, so that you can “start life afresh.”
Warning! Such tactics will only land you into more trouble. 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. They ask for full payment up front – these credit repair scams ask you for their fees in full before rendering their services. This is understandable, because they realize that you will eventually find out that they cannot really remove bad credit or improve your credit score as quickly as they claimed. And at that point, they won’t get paid.
It’s entirely possible to avoid credit repair scams. Just don’t forget that no matter how desperate your situation, look closely for the warning signs!