Beware Of Credit Repair Scams

No doubt you've heard many, many stories of people who have hired credit repair organizations for help to improve their poor credit, but who have instead been cheated by credit repair scams. So that you can understand what pathway to take to avoid being taken in by these crooks, you need to understand how they function.

They're all too aware of that those who find themselves suffering financial hardship will be desperate enough to believe whatever is told them, in the hope that these fake agencies are really able to help them, so they can regained a peace of mind. They will often be so disheartened by the system, which is downright cruel to those who have poor credit, that they'll do anything whatsoever to get relief.

Most those who seek out help on the verge of declaring bankruptcy. It is these who are the easiest targets of credit repair scams.

And why is this? Because they want fast results, and are unable to internalize the fact that the credit repair process takes at least 6 - 12 months. Very often, they feel that they don't have much time, and unless they take fast action, it will spell future disaster.

Ironically, when they hire such unscrupulous agencies instead of getting themselves rid of debt, they will lose whatever little money they still had, because they've been fooled into chasing a mirage.

Here are the warning signs that alerts you to credit repair scams:

1. They promise miracles

These unscrupulous companies promise to get every negative trade line deleted from your credit report. They will guarantee you that your credit score will improve in an astonishingly short time.

They try to accomplish this by disputing everything negative in your credit report. The credit bureaus may initially remove some or most of the disputed items which they are 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 if the bureau verifies the items at a later date, they'll go back on the credit report - plus you will have earned the reputation of being a hustler!

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 Social Security Number, so that you can "start life afresh." Beware! Such tactics can land you in a lot of trouble. It's not only against the law 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 require all their fees be paid up front

A good many credit repair scams ask for their fees in full before any services have been rendered.

This is understandable, because they know that sooner or later you will discover that that they can't deliver as fast as they had promised. And at that point, you would refuse to pay.

It's entirely possible to avoid credit repair scams. Just don't forget that no matter how desperate you become, look out for the red flags!