It's likely you've heard about those who have sought out credit repair organizations for help to improve their credit report, but to have instead been taken in by bad credit repair scams. In order to understand what pathway to take to protect yourself against these scammers, you must know how they function.
They're betting that those who find themselves up to their neck in debt will be desperate enough to grasp at whatever is told them, in the hope that these fake agencies really can deliver on their promises, so they can regained their serenity. They are often so disheartened by the system, which is downright cruel to those who have problem credit, that they'll do anything to resolve their problems.
Most those seeking help on the verge of declaring bankruptcy. It is these who are most likely to fall prey to credit repair scams.
And why is this? Because they want fast results, and are unaware that raising their credit rating can take up to 12 months. Very often, they feel like time is running out on them, and unless they take fast action, 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, because they've been deluded into chasing a mirage.
Here are the warning signs that alerts you to credit repair scams:
1. They promise the impossible
These less than honest companies promise they will have all the negative remarks removed from your credit report. They will guarantee you that your credit score will improve within the next 2-3 months.
They attempt to do this by disputing every negative trade line in your credit report. The bureaus 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 credit bureau is later able to verify the negative items, they'll end up back on the report - plus you will have earned a bad reputation - that of a scammer!
2. They tempt you to bend the rules
They actually break the law with their tactics, such as using other people's identity to increase your overall credit, by offering to give you a new SSN, so that you can "start from scratch." Look out! Such tactics can land you in a lot 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 much worse than bad credit.
3. They ask for full payment up front
Most of the credit repair scams are characterized by the fact that they ask for payment in full up front. This is understandable, because they realize that you will eventually find out that they cannot really remove bad credit or improve your credit score as they had promised. And at that point, you won't pay them.
In conclusion, credit repair scams are avoidable. Just don't forget that no matter how desperate your situation, look closely for the warning signs!
And one more thing: Get your hands on a copy of "The Danger Signs to look for in a Credit Repair company" CLick here and fight credit repair scams!