Credit Repair Scams - How to Avoid Disaster
You’ve probably heard about those who have sought out credit repair agencies for help to improve their poor credit, but to have instead been taken in by credit repair scams. So that you can understand what pathway to take to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must be aware of how they function.
They’re all too aware of that people who find themselves undergoing financial hardship are in such desperate straits as to grasp at anything they are told, hoping these fraudulent companies are really able to lead them out of financial despair, so they can reclaim their lives. They in many cases are so disheartened by the system, which is downright cruel to people who suffer from credit problems, that they’ll do anything whatsoever to resolve their problems.
Most of those looking for help are ready to declare bankruptcy. These are the people who are most vulnerable to credit repair scams.
Why? Because they feel a sense of urgency, and don’t realize that the process of repairing a credit report can take up to 12 months. Very often, they feel that they don’t have much time, and unless they take some urgent and drastic steps right now, disaster awaits them in the future. Ironically, when they hire such unscrupulous agencies rather than ridding themselves of debt, they will find themselves in even worse financial straits, since they’ve been chasing a mirage.
Here are the warning signs so you can avoid credit repair scams:
1. They promise miracles - you will find that these agencies promise they will get every negative account deleted from your credit report. They will also guarantee that your score will increase in an astonishingly short time.
They try to accomplish this by disputing everything negative in your report. The bureaus may initially remove some or most of the disputed items that can’t be verified 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 can verify the negative accounts at a future date, they’ll end up back on the report - plus you will have earned the reputation of being a hustler!
2. They play fast and loose with the rules - they actually break the law with their tactics, such as using the identity of others to increase your overall credit, by offering to give you a new Social Security Number, so that you can “start life afresh.”
Danger! Such tactics can land you in a lot of 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 much worse than bad credit.
3. You demand full payment 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 they cannot really remove bad credit or improve your credit score as fast as they had promised. And at that point, you won’t pay them.
In conclusion, credit repair scams are avoidable. Just remember that no matter how desperate your situation, look closely for the warning signs!