Credit Repair Scams – How to Stay Safe

You’ve probably heard about people who go to credit repair agencies for help to improve their poor credit, only to be ripped off by credit repair scams. So that you can understand what pathway to take to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must know how they function.

They know that people who find themselves drowning in debt are in such desperate straits as to grasp at whatever is told them, hoping these fraudulent companies will be able to solve their financial problems, so they can regained a peace of mind. They in many cases are so disheartened by the system, which is downright cruel to people who have problem credit, that they’ll do anything to resolve their problems.

Most people looking for help on the verge of declaring bankruptcy. It is these who are the easiest targets of credit repair scams.

The reason? Because they are impatient, and don’t realize that fixing their credit score can take up to 12 months. Very often, they feel that they don’t have much time, and unless they act quickly, it will spell future disaster. Ironically, when they sign up with these scam artists instead of improving their financial situation, they will find themselves in even worse financial straits, since they’ve made the mistake of chasing a mirage.

Heed these warning signs that could indicat credit repair scams:

1. They promise miracles – these less than honest companies promise they will get every negative account deleted from your credit report. They will guarantee you that your credit score will improve within the next 2-3 months.

They try to make this happen by disputing every negative trade line in your credit repor. The bureaus may initially remove some or most of the disputed items that can’t be verified 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 will be back on your report – plus you will have earned the reputation of being a hustler!

2. They urge you to violate the rules – they use illegal means, such as using the identity of others to improve credit, by offering to give you a new SSN that has no bad credit record, so that you can “start your financial life over.”

Beware! Such tactics will only land you into more 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 much worse than bad credit.

3. They require all their fees be paid up front – most of the credit repair scams ask you for payment in full before rendering their services. This is understandable, because they will be worried that you will soon discover that they cannot really remove bad credit or improve your credit score as quickly as they claimed. And at that point, you would understandably be reluctant to pay their fees.

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

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