I’m sure you’ve heard lots of stories of those who have hired credit repair organizations for assistance to improve their credit score, but who have instead been cheated by credit repair scams. To learn what must be done to avoid being ripped off by such unscrupulous people|these scammers|these crooks}, you must know how they function.
They’re betting that those unfortunates who are drowning in debt are in such desperation as to grasp at anything they are told, hoping these fraudulent companies are really able to help them, so they can regained their serenity. They are often so disheartened by the system, which is downright cruel to those with a poor credit score, that they’ll do anything whatsoever to resolve their problems.
Most people who seek out help are ready to declare bankruptcy. It is these who are most vulnerable to credit repair scams.
Why is this? Because they want fast results, and don’t realize 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 some urgent and drastic steps right now, it will spell future disaster. Ironically, when they hire such unscrupulous agencies rather than solving their financial problems, they will find themselves worse off than ever, because they’ve been fooled into chasing a mirage.
Here are some red flags that could indicat credit repair scams:
1. They promise too good to be true results – many of these agencies promise they will have every negative account removed 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 negative trade line in your report. The bureaus may initially remove some or most of the disputed items that can’t be verified within the required 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.
But if the credit reporting agencies 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 use illegal means, such as using other people’s identity to increase your overall credit, by offering to give you a new SSN that has no bad credit record, so that you can “start your financial life over.”
Danger! Such tactics will only land you into more trouble. 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 you for full payment up front. This is understandable, because they know that sooner or later you will discover that that they can’t deliver as quickly as they claimed. And at that point, you won’t pay them.
It’s entirely possible to avoid credit repair scams. Just don’t forget that no matter how desperate you become, look out for the red flags!
