Credit Repair Scams – Avoiding Disaster
It’s likely you’ve heard about people who have gone to credit repair agencies for help to improve their bad credit report, but to have instead been taken in by credit repair scams. To learn what must be done to protect yourself against such unscrupulous people|these scammers|these crooks}, you must know how they function.
They’re betting that those who find themselves undergoing financial hardship are in such desperation as to swallow anything they are told, 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 those with a poor credit score, that they’ll take desperate measures to get relief.
Most of those who seek out help are ready to declare bankruptcy. It is these who are most likely to fall prey to credit repair scams.
The reason? Because they want fast results, and are unable to internalize the fact that the credit repair process can take up to 12 months. Very often, these people feel like time is running out on them, and unless they take fast action, it will spell future disaster. Ironically, when they hire such unscrupulous agencies instead of solving their financial problems, they will find themselves in even worse financial straits, since they’ve been chasing a mirage.
Beware of these red flags that alerts you to credit repair scams:
1. They promise the impossible – you will find that these agencies promise they will get all adverse accounts deleted from your credit report. They will guarantee you that your credit score will improve within 2 or 3 months.
They attempt to do this by disputing every adverse trade line in your report. The credit bureaus may initially remove some or most of the disputed items which they are unable to verify in the space of 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.
But if the credit 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 urge you to violate the rules – they actually break the law with their tactics, such as using other people’s identity to improve 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. They require all their fees be paid up front – a good many credit repair scams are characterized by the fact that they ask for their fees 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 fast as they had promised. And at that point, you would understandably be reluctant to pay their fees.
It’s entirely possible to avoid credit repair scams. Just keep in mind that no matter how desperate your situation, look closely for the warning signs!
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