Credit Repair Scams – Danger Ahead
I’m sure you’ve heard stories of people who have gone to credit repair agencies for assistance to improve their bad credit report, only to fall prey to credit repair scams. Before you understand what actions must be taken to protect yourself against such unscrupulous people|these scammers|these crooks}, you must know how they function.
They know that people who are over their heads in debt are so desperate as to swallow anything they are told, hoping these fraudulent companies will really be able to improve their credit score, so they can get their lives back. They are often so disheartened by the system, which is downright cruel to people who have poor credit, that they’ll take desperate measures to get it fixed.
Most people seeking help are close to bankruptcy, or at least contemplating it. It is these who are the easiest targets of credit repair scams.
And why is this? Because they are impatient, and don’t realize that the credit repair process can take up to 12 months. Very often, they feel that they don’t have much time, and unless they act right now, it will spell future disaster. Ironically, when they hire these scam artists instead of ridding themselves of debt, they will lose whatever little money they still had, since they’ve made the mistake of chasing a mirage.
Heed these warning signs that could indicat credit repair scams:
1. They promise too good to be true results – these less than honest companies promise to get every negative trade line deleted from your credit report. They will guarantee you that your credit score will improve in an astonishingly short time.
They try to accomplish this by disputing everything negative in your credit repor. The credit reporting agencies may initially remove some or most of the disputed items that they can’t verify within 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.
But if the credit reporting agencies 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 use illegal means, 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 from scratch.”
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 – these credit repair scams ask for payment in full before any services have been rendered. 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 won’t pay them.
Know that you can avoid credit repair scams. Just don’t forget that no matter how desperate you become, look closely for the warning signs!