Credit Repair Scams – Avoiding Disaster
You’ve probably heard lots of stories about people who have gone to credit repair agencies for assistance to improve their bad credit, but who have instead been cheated 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 those unfortunates who are drowning in debt are in such desperation as to believe whatever is told them, hoping these fraudulent companies will really be able to improve their credit score, so they can regained their serenity. They will often be so disheartened by the system, which is downright cruel to those with a poor credit score, that they’ll do anything whatsoever to get it fixed.
Most of those who seek out help on the verge of declaring bankruptcy. It is these who are the most easily taken in by credit repair scams.
And why is this? Because they want fast results, and are unaware that raising their credit rating requires at minimum 6 – 12 months. Very often, these folks feel that they don’t have much time, and unless they take action right now, it will be too late. Ironically, when they sign up with these scam artists rather than getting themselves rid of debt, they will lose whatever little money they still had, because they’ve been fooled into chasing a mirage.
Heed these warning signs that alerts you to credit repair scams:
1. They promise too good to be true results – 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 within 2 or 3 months.
They attempt to do this by disputing every adverse accounts in your credit repor. 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 might look as though this fraudulent agency has delivered on its promise.
But if the bureaus is later able to verify the negative items, 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 Social Security Number, so that you can “start life afresh.”
Danger! Such tactics can land you in a lot of trouble. 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 – these credit repair scams are characterized by the fact that they ask for their fees in full before any services have been rendered. This is understandable, because they know that sooner or later you will discover that they cannot really remove bad credit or improve your credit score as fast as they had promised. And at that point, you would refuse to pay.
In conclusion, credit repair scams are avoidable. Just keep in mind that no matter how desperate you become, don’t ignore the warning signs!
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