Credit Repair Scams - Avoiding Tragedy

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!

Credit Repair Companies - 5 Tips to Avoid Being Scammed!

Credit Repair Companies - Can You Trust Them?

Credit Repair Companies, in general, have gotten a "bad rap" and for good reason! A lot of scammers have posed as credit repair experts, promising to help relieve their clients of their problem credit. But at the end of the day, all they have "relieved" them of is their savings!

But not all credit repair professionals are crooks! There are a great many ethical credit repair companies that provide a valuable and much needed service to the consumer.

Poor credit can dig deep into your pockets and drain away your hard-earned money on appallingly high interest rates. At the same time, credit repair is a long drawn out process, which requires close follow-up and often specialized and customized appeals to delete inaccurate negative data from your credit report.

You are undoubtedly aware that there are a great many credit repair companies and credit repair lawyers ready to offer their services, but you're unsure of which one to choose. You may have heard too many stories of people being ripped off, and for that reason, you are undecided.
Here are five factors that you should consider:

1. Professionalism - is the company you are considering professional? Check out their web site carefully and see whether you are comfortable with what you find there.

• Is the website easily easy to navigate?
• Does it have a page with FAQs that can help guide you?
• Do they have a live chat or fast-response email service to address your questions?
• Is there counseling offered free by the companies?
• Does it make extraordinary claims? (Beware!)
  
  Check carefully every aspect, and trust both your logic and your gut feelings.

2. Ethical - it is very important that the credit repair companies you choose behaves ethically. Do not be taken in by agencies that claim they can remove all your negative accounts, whether they are being accurately reported or not. You should expect to remove only those accounts that are erroneous.

Do not be persuaded to use illegal means to increase your score. You might be inviting more trouble than you could handle. Search the Web for reviews or feedback on the credit repair companies you're considering. Be on the lookout for any negative reports. Check whether the agency is listed with any reputed organizations such as the ECRA (Ethical Credit Repair Alliance) or the BBB (Better Business Bureau) which will require that they adhere to strict codes of conduct.

3. 24/7 monitoring - credit repair goes beyond just "credit repair." It means education, counseling, awareness, and monitoring among other things. Regular monitoring and immediate intervention when negative remarks find their way into your credit report are far more effective in maintaining a good credit score that just repairing it. Are the credit repair companies offering you more? Do they offer these additional services on their menu?

4. Reasonable - it is true that credit repair companies are in business to generate revenue. However, this should not be at the cost of their clients. The best business relationships, ones that survives time and changes in technology, are often associated with the offer of value-for-money by companies. You must feel happy about the price and services offered. Research these aspects well enough to be empowered to negotiate the best rate. Do not be afraid to negotiate.

5. Offer solutions - you need solutions. The best credit repair companies are those that strive to draw you out and learn about your problems in detail, so that they can design a customized solution for your personal situation. This is especially important since no two financial problems will be identical, and what works fine for one person may not be the best solution for another. Look for a credit repair agency whose goal is offering solutions - solutions that are "tailor made" for YOU!