Credit Repair Scams – Be Very Careful

By Doherty • May 23rd, 2011
Factors contributing to someone's credit score...

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You’ve probably heard about those who have hired credit repair agencies for help to improve their low credit score, but have instead been ripped off by credit repair scams. Before you understand 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’re all too aware of that those unfortunate enough to be over their heads in debt are in such desperation as to grasp at whatever is told them, hoping these fraudulent companies will really be able to improve their credit score, 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 take desperate measures to get it fixed.

Most of those looking for help are close to bankruptcy, or at least contemplating it. These are the people who are the most easily taken in by credit repair scams.

The reason? Because they want fast results, and are unable to internalize the fact that improving their credit takes at least 6 – 12 months. Very often, these folks feel like time is running out on them, and unless they take action right now, disaster awaits them in the future. Ironically, when they sign up with these company’s rather than getting themselves rid of debt, they will find themselves worse off than ever, because they’ve been fooled into chasing a mirage.

Here are some red flags to avoid credit repair scams:

1. They promise too good to be true results – many of these agencies promise they will get all adverse accounts deleted from your credit report. They will also guarantee that your score will increase within the next 2-3 months.

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

But if the credit reporting agencies verifies the items at a later date, they will be back on your report – plus you will have earned the reputation of being a hustler!

2. They tempt you to bend the rules – they will employ illegal tactics, such as using the identity of others to improve credit score, by offering to give you a new SSN, so that you can “start from scratch.”

Warning! 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 far worse that having bad debt.

3. They require all their fees be paid up front – a good many credit repair scams ask for their fees in full up front. This is understandable, because they know you will 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.

In conclusion, credit repair scams are avoidable. Just keep in mind that no matter how desperate you become, look closely for the warning signs!

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