Credit Repair Scams – Staying Safe

You’ve probably heard about people who go to credit repair companies for assistance to improve their low credit score, only to fall prey to credit repair scams. To learn what actions must be taken to avoid being ripped off by such unscrupulous people|these scammers|these crooks}, you must learn how they function.

They know that those who find themselves drowning in debt will be desperate enough to grasp at anything they are told, in the hope that these fake agencies 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 whatsoever to get it fixed.

Most of those who seek out help are thinking about declaring bankruptcy. It is these who are the most easily taken in by credit repair scams.

The reason? Because they are impatient, and are unable to internalize the fact that solving their credit problems requires at minimum 6 – 12 months. Very often, these people feel like time is running out on them, and unless they take some urgent and drastic steps right now, it will be too late. Ironically, when they sign up with these scam artists instead of improving their financial situation, they will lose whatever little money they still had, because they’ve been deluded into chasing a mirage.

Beware of these 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 within the next 2-3 months.

They try to accomplish this by disputing every adverse trade line in your credit repor. The credit bureaus may initially remove some or most of the disputed items which they are unable to verify within 30 days. In the meantime, it might look as though this fraudulent agency has delivered on its promise.

But if the bureaus is later able to verify the negative items, 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, by offering to give you a new Social Security Number, so that you can “start life afresh.”

Look out! 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 you for full payment before any services have been rendered. This makes sense, because they will be worried that you will soon discover that they cannot really remove bad credit or improve your credit score as they had promised. And at that point, they won’t get paid.

It’s entirely possible to avoid credit repair scams. Just remember that no matter how desperate you become, look closely for the warning signs!

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