Credit Repair Scams - How To Avoid Disaster
No doubt you've heard many, many stories of those who have sought out credit repair companies for assistance to improve their bad credit report, only to be taken in by credit repair scams. Before you understand what pathway to take to protect yourself against these scammers, you must be aware of how they function.
They're all too aware of how desperate people can be in the midst of financial difficulty - desperate enough to believe their situation completely hopeless, and all too eager to believe anything to solve their problems and get back to a normal life. Often times they feel so dejected by society, which is downright pitiless toward people in their situation, that they'll take rash action to improve their predicament.
Most people in this situation are on the verge of declaring bankruptcy. It is these who are most vulnerable to credit repair scams.
Why? Because they feel such urgency, and are not able or willing to accept that the process of credit repair can take as long as 12 months. Very often, they feel like time is running out on them, and unless they take fast action, it will be too late. Ironically, when they hire these company's rather than solving their financial problems, they will find themselves worse off than ever, since they've been chasing a mirage.
Here are some red flags to avoid credit repair scams:
1. They promise results that are just not possible - these fly-by-night organizations tell you they will have every adverse account removed from your report. They will guarantee you that your credit score will improve in a very short time.
They attempt to do this by disputing everything negative in your report. The bureaus may at first remove many of the negative accounts that they're 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 then later on the Bureau may verify the negative item, and then it winds up right back on the credit report - plus you will have earned the reputation of being a hustler!
2. They urge you to violate the rules - they actually break the law with their tactics, such as using the identity of others to increase your overall credit, by offering to give you a new Social Security Number, so that you can "start your financial life over."
Beware! These tactics will end up costing you a world of trouble.
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 far worse that having bad debt.
3. They insist on complete payment at the outset - A dead "given away" is when they require a full payment before rendering any services. This makes sense, because they know you will find out that they cannot really remove bad credit or improve your credit score as they had promised. And at that point, you would refuse to pay.
Credit repair scams can be avoided. Just remember that no matter how desperate you become, don't ignore the warning signs!
They're all too aware of how desperate people can be in the midst of financial difficulty - desperate enough to believe their situation completely hopeless, and all too eager to believe anything to solve their problems and get back to a normal life. Often times they feel so dejected by society, which is downright pitiless toward people in their situation, that they'll take rash action to improve their predicament.
Most people in this situation are on the verge of declaring bankruptcy. It is these who are most vulnerable to credit repair scams.
Why? Because they feel such urgency, and are not able or willing to accept that the process of credit repair can take as long as 12 months. Very often, they feel like time is running out on them, and unless they take fast action, it will be too late. Ironically, when they hire these company's rather than solving their financial problems, they will find themselves worse off than ever, since they've been chasing a mirage.
Here are some red flags to avoid credit repair scams:
1. They promise results that are just not possible - these fly-by-night organizations tell you they will have every adverse account removed from your report. They will guarantee you that your credit score will improve in a very short time.
They attempt to do this by disputing everything negative in your report. The bureaus may at first remove many of the negative accounts that they're 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 then later on the Bureau may verify the negative item, and then it winds up right back on the credit report - plus you will have earned the reputation of being a hustler!
2. They urge you to violate the rules - they actually break the law with their tactics, such as using the identity of others to increase your overall credit, by offering to give you a new Social Security Number, so that you can "start your financial life over."
Beware! These tactics will end up costing you a world of trouble.
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 far worse that having bad debt.
3. They insist on complete payment at the outset - A dead "given away" is when they require a full payment before rendering any services. This makes sense, because they know you will find out that they cannot really remove bad credit or improve your credit score as they had promised. And at that point, you would refuse to pay.
Credit repair scams can be avoided. Just remember that no matter how desperate you become, don't ignore the warning signs!
