You’ve probably heard about those who have sought out credit repair organizations for help to improve their credit report, but have instead been ripped off by credit repair scams. Before you understand what you need to do to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must learn how they function.
They know that those unfortunate enough to be over their heads in debt will be desperate enough to believe whatever is told them, in the hope that these fake agencies are really able to lead them out of financial despair, so they can regained their serenity. They will often be so disheartened by the system, which is downright cruel to those who have problem credit, 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.
Why is this? Because they are impatient, and are unaware that raising their credit rating takes at least 6 - 12 months. Very often, these people feel that they don’t have much time, and unless they take fast action, it will spell future disaster. Ironically, when they hire such unscrupulous agencies instead of getting themselves rid of debt, they will lose whatever little money they still had, because they’ve been deluded into chasing a mirage.
Heed these warning signs so you can avoid credit repair scams:
1. They promise impossible results - these unscrupulous companies promise they will get all adverse accounts deleted from your credit report. They will guarantee you that your credit score will improve in an astonishingly short time.
They attempt to do this by disputing every adverse accounts in your report. The credit bureaus may initially remove some or most of the disputed items that they can’t 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 credit reporting agencies 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 tempt you to bend the rules - they will employ illegal tactics, such as using other people’s identity to improve credit, by offering to give you a new SSN, so that you can “start your financial life over.”
Beware! Such tactics will only land you into more trouble. Not only is it illegal 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. You demand full payment up front - these credit repair scams ask you for their fees in full up front. This makes sense, because they know that sooner or later you will discover that they cannot really remove bad credit or improve your credit score as quickly as they claimed. And at that point, you won’t pay them.
In conclusion, credit repair scams are avoidable. Just don’t forget that no matter how desperate you become, look closely for the warning signs!