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Falling victim to a credit repair scam can be a devastating experience, because it could cost you a huge amount of wasted time and money. You have to resist offers that claim to clean up your credit, even through the stress keeps on pressing against you because your credit is less-than-perfect. Sure, you may want to get credit protection and establish back an impressive credit score, so that creditors can approve you for things like, loans, mortgages and insurance. When you’re vulnerable like this, you may look to companies that claim they can help you re-establish a good reputation and a desirable score. However, are you sure that the company you found is not a bogus one? There are surely legitimate companies out there offering assistance to those with damaged credit, but there are also credit repair scams that want to further injure your compromised situation. You should know how to prevent credit scams and credit card fraud during these vulnerable times. Watch out for companies that make outrageous offers If you stumbled upon a company that claims they can totally “erase” every negative mark on your credit report and restore your credit status in the soonest time possible, proceed with caution. Take note that negative information cannot be removed from your report unless it is an error. If the information is correct, it has to stay on your report for some time. A company that tells you they can clear your record from negative information is simply outrageous. It is most likely a scam. Search for companies that provide client education Legitimate companies offer assistance and education for their clients during the process of credit repair. These trainings are meant to give people a clear understanding of why their credit has been damaged. Since you can always clean up your act and re-establish your credit, these companies are there to offer guidance throughout your recovery process, making it easier for you to succeed sooner than later. Keep an eye on companies that tell you not to contact the credit companies about your plans of seeking credit repair help. You should also watch out for those that claim you cannot repair your own credit without their help. Watch out for companies that ask for up-front payment before doing any work Reputed credit repair companies accept payment right after they have performed their work. They don’t ask for payments in advance. If you come across a company that asks for up-front payments before doing their job, count that as a red flag of a possible credit repair fraud. Don’t fall for the trap of “new credit identity” This one is a common credit repair scam. In this modus operandi, bogus companies convince their clients to create a new credit identity. They’ll ask their clients to apply for a new employer identification number (or EIN) to be used for their credit report instead of their old social security number (SSNs). Doing this is considered fraud, because the new identification numbers they offer are most likely stolen SSNs. If you get involved, you can get implicated in their criminal activity, even without your knowledge. Take note that you cannot change your credit identity. Instead, look for a company that encourages you to work out on your credit score and helps you make a plan to manage your payments. Amy is an active blogger who is fond of sharing interesting finance related articles to encourage people to manage and protect their finances. Follow her to know the importance of identity theft insurance and tips to deal with stolen identity.
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credit protection, prevent credit scams, credit repair scams, credit card fraud,
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