Credit Repair Scams – Don’t Get Ripped Off!
No doubt you’ve heard a great many stories of people who have gone to credit repair agencies hoping they can improve their credit, only to be ripped off by credit repair scams!
To protect yourself from these crooks, you need to be aware of how they operate.
First of all, they are keenly aware of the desperate situation of those who have bad credit. And they know that such people are so very desperate, they are eager to believe just about anything a company tells them, if they think it will help them out of their despair.
They are often so disheartened by the system, which seems downright cruel and uncaring toward their plight, that they’ll do anything to improve their situation. Most people who seek out help are on the verge of declaring bankruptcy. It’s these individuals who are the most likely to fall prey to credit repair scams.
Why? Because they feel a great sense of urgency. They just don’t want to believe or accept the reality that fixing their credit score can take up to 12 months. Very often, they feel they are running out of time, and that unless they take drastic steps immediately, it will be too late.
Ironically, when they sign up with such unscrupulous agencies, rather than improving their financial situation, they find themselves even worse off than ever!
If you expect to steer clear of credit repair scams, make sure you heed these warning signs:
1. They promise the impossible
These lowlifes promise they can get EVERY negative account removed from your credit report. They’ll also guarantee that your score will increase within 2 or 3 months.
Then they dispute every adverse trade line in your report. And in fact, the credit bureaus may at first remove some (or most) of the disputed items, if they can’t verify them within the 30 day time span required by law. But some time later, those items may indeed get verified.
Then guess what happens? That’s right – they go right back on the credit report!
Credit repair companies can ofter make major improvement to you credit score – but there can never be any guarantees. The company who tells you – truthfully – that they cannot make ANY promises as far as results, may not be as appealing as those who make wild promises. But it would behoove you to trust them over those who do!
2. They urge you to take measures that are illegal
They will employ an illegal tactic – having you get a new Social Security Number that has no bad credit record associated with it – in effect, giving you a “brand new identity” who has clean credit.
If this happens, run the other way! This is most definitely illegal, and can get you in BIG trouble! You’ll wish you could go back in time to when your “only” problem was having to with your bad credit!
3. They ask for full payment up front
It’s not uncommon for a credit repair agency to charge an initial fee for a credit report analysis, credit advice, or a consultation. After all, they are providing a service and are entitled to fair compensation.
But beware of those who insist on their entire fee up front! Most all of the credit repair scammers will do this. And for good reason – they realize that once they are “found out” you’re not about to pay them!
In conclusion, credit repair scams ARE avoidable. You need not fall prey to them if you keep a cool head, do your research, and watch out for the “warning signs.” And most of all, don’t allow your desperation cloud your judgment!
For the FREE Report “The Danger Signs to look for in a Credit Repair company” sign up for the ECRA Newsletter (Right Hand side of this Page)
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