Credit Repair Scams - Danger Ahead

By: Jim Eastman Click author's name for more of his/her articles

I'm sure you've heard stories about people who go to credit repair companies for assistance to improve their credit score, but have instead been ripped off by credit repair scams. So that you can be aware of what must be done to protect yourself against these crooks, you need to understand how they function.

They're all too aware of how desperate people can be in the midst of financial difficulty - desperate enough to believe their situation completely hopeless, and all too eager to believe anything to solve their problems and get back to a normal life. They are often so disheartened by the system, which is downright cruel to people who suffer from credit problems, that they'll do anything to get it fixed.

Most people looking for help are ready to declare bankruptcy. It is these who are most vulnerable to credit repair scams.

Why? Because they feel such urgency, and are not able or willing to accept that the process of credit repair can take as long as 12 months. Very often, they feel like time is running out on them, and unless they take fast action, it will be too late. The irony is, by hiring one of these scammers, they will end up worse off than ever.

Beyond the lookout for these indicators if you wish to avoid scams:

1. They promise impossible results - these less than honest companies promise to get every negative trade line deleted from your credit report. They will guarantee you that your credit score will improve in a very short time.

They attempt this by filing a dispute with the bureaus regarding every adverse trade line in your credit report. The bureaus may at first remove many of the negative accounts that they're unable to verify in the space of 30 days. In the meantime, it could appear as though the company has accomplished what exactly what it said it would.

But if the credit bureau can verify the negative accounts at a future date, they'll end up back on the report - plus you will have earned the reputation of being a hustler!

2. They urge you to use illegal tactics - they actually break the law with their tactics, such as using the identity of others to increase your overall credit, by offering to give you a new Social Security Number, so that you can "start your financial life over."

Beware! These tactics will end up costing you a world of trouble.

Taking a "new" social security number is not only illegal: that number could even reside in police records, being attached to someone in trouble with the law.

3. They demand full payment up front - a good many credit repair scams are characterized by the fact that they ask for their fees in full up front. This stands to reason, because they know they need to collect now before the client becomes aware of their empty promises. And then you'll be unwilling to pay the fee.

Know that you can avoid credit repair scams. Just remember that no matter how desperate you become, don't ignore the warning signs!

Article Source: ABC Article Directory

About The Author: The Jim Eastman is an advocate of ethical business practices, and writes on numerous other topics as well. Want more great tips on detecting credit repair scams? Free report at: www.ecraonline.org