Credit Repair Scams - Financial Disaster

It’s likely you’ve heard stories about people who go to credit repair companies for help to improve their bad credit, but to have instead been taken in by credit repair scams. Before you understand what must be done to protect yourself against such unscrupulous people|these scammers|these crooks}, you need to understand how they function.

They’re betting that those unfortunates who are suffering financial hardship will be desperate enough to swallow anything they are told, in the hope that these fake agencies can really improve their credit, so they can regained a peace of mind. They in many cases are so disheartened by the system, which is downright cruel to those who have problem credit, that they’ll take desperate measures to resolve their problems.

Most of those seeking help are thinking about declaring bankruptcy. These are the people who are most vulnerable to credit repair scams.

Why is this? Because they feel a sense of urgency, and don’t realize that the credit repair process takes at least 6 - 12 months. Very often, these folks feel that they don’t have much time, and unless they act quickly, it will be too late. Ironically, when they hire these company’s rather than ridding themselves of debt, they will lose whatever little money they still had, since they’ve been chasing a mirage.

Here are some red flags that alerts you to credit repair scams:

1. They promise impossible 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 make this happen by disputing every negative trade line in your report. The credit bureaus may initially remove some or most of the disputed items that can’t be verified within 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.

But if the credit 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 actually break the law with their tactics, such as using the identity of others to improve credit, by offering to give you a new Social Security Number, so that you can “start life afresh.”

Beware! Such tactics could put you in hot water. 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. They ask for full payment up front - these credit repair scams ask you for their fees in full up front. This is understandable, because they realize that you will eventually find out that that they can’t deliver as they had promised. And at that point, you would understandably be reluctant to pay their fees.

In conclusion, credit repair scams are avoidable. Just don’t forget that no matter how desperate you become, look closely for the warning signs!

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