Credit Repair Scams - Exercise Caution
I’m sure you’ve heard about those who have hired credit repair organizations for help to improve their bad credit, only to be ripped off by credit repair scams. So that you can understand what actions must be taken to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must be aware of how they function.
They know that people who find themselves over their heads in debt will be desperate enough to grasp at whatever is told them, hoping these fraudulent companies are really able to lead them out of financial despair, so they can get their lives back. They will often be so disheartened by the system, which is downright cruel to people with a poor credit score, that they’ll take any measures to get relief.
Most of those seeking help are ready to declare bankruptcy. These are the people who are the most easily taken in by credit repair scams.
Why is this? Because they are impatient, and are unaware that improving their credit requires at minimum 6 - 12 months. Very often, these folks feel that they don’t have much time, and unless they act quickly, it will be too late. Ironically, when they sign up with these scam artists instead of improving their financial situation, they will find themselves worse off than ever, since they’ve been chasing a mirage.
Beware of these red flags to avoid credit repair scams:
1. They promise miracles - these unscrupulous companies promise they will have every negative account removed 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 everything negative in your report. The credit reporting agencies 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 might look as though this fraudulent agency has delivered on its promise.
But if the bureaus can verify the negative accounts at a future date, they’ll go back on the credit 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 other people’s identity to increase your overall credit, by offering to give you a new SSN, so that you can “start your financial life over.”
Look out! 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 full payment before rendering their services. 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 refuse to pay.
In conclusion, credit repair scams are avoidable. Just don’t forget that no matter how desperate your situation, look closely for the warning signs!