Credit Repair Scams - Staying Safe

You’ve probably heard lots of stories of people who have hired credit repair agencies for help to improve their low credit score, only to fall prey to credit repair scams. In order to understand what pathway to take to protect yourself against such unscrupulous people|these scammers|these crooks}, you need to understand how they function.

They’re betting that those who find themselves suffering financial hardship will be desperate enough to believe anything they are told, hoping these fraudulent companies will really be able to improve their credit score, so they can get their lives back. They will often be so disheartened by the system, which is downright cruel to people who have poor credit, that they’ll do anything whatsoever to get it fixed.

Most people looking for help near bankruptcy, or at least contemplating it. It is these who are the easiest targets of credit repair scams.

And why is this? Because they want fast results, and are unable to internalize the fact that raising their credit rating can take up to 12 months. Very often, these folks feel like time is running out on them, and unless they take fast action, it will be too late. Ironically, when they sign up with 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.

Heed these warning signs to avoid credit repair scams:

1. They promise miracles - lots of these agencies promise they will have all the negative remarks removed from your credit report. They will guarantee you that your credit score will improve within 2 or 3 months.

They attempt to do this by disputing every adverse trade line in your credit repor. The credit reporting agencies 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 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 tempt you to bend the rules - they use illegal means, 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.”

Warning! 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 much worse than bad credit.

3. You demand full payment up front - most of the credit repair scams ask for full payment up front. This makes sense, because they know you will find out that that they can’t deliver as they had promised. And at that point, you won’t pay them.

It’s entirely possible to avoid credit repair scams. Just keep in mind that no matter how desperate you become, look out for the red flags!