It’s likely you’ve heard stories about people who have hired credit repair organizations for help to improve their low credit score, only to be taken in 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 be aware of how they function.
They’re all too aware of that people who find themselves up to their neck in debt will be desperate enough to swallow whatever is told them, in the hope that these fake agencies are really able to help them, so they can reclaim their lives. They will often be so disheartened by the system, which is downright cruel to people who have problem credit, that they’ll take any measures to get relief.
Most people seeking help are ready to declare bankruptcy. It is these who are most likely to fall prey to credit repair scams.
And why is this? Because they are impatient, and do not know that the process of repairing a credit report requires at minimum 6 - 12 months. Very often, they 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 company’s instead of improving their financial situation, they will find themselves worse off than ever, because they’ve been deluded into chasing a mirage.
Beware of these red flags that point to 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 also guarantee that your score will increase within 2 or 3 months.
They try to accomplish 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 within the required 30 days. In the meantime, it will seem that 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 play fast and loose with the rules - they will employ illegal tactics, such as using the identity of others to improve credit score, by offering to give you a new SSN that has no bad credit record, so that you can “start life afresh.”
Beware! 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 much worse than bad credit.
3. They ask for full payment up front - a good many credit repair scams ask for full payment before rendering their services. This makes sense, because they know you will find out 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 don’t forget that no matter how desperate your situation, look closely for the warning signs!