When you are desperate, you are more vulnerable to scams of credit repair and dodgy money lenders whose sole purpose is to take advantage of you. Such a credit repair scam can cost you thousands of dollars, and if the service fooled you once, it will fool you again.
A credit repair service that isn’t trustworthy can scam anyone that looks desperate because he/she is losing money and property and will want their situation rectified as soon as possible. These people are easy victims because of their financial situation. Services like these present themselves in such a light that you might think they are the perfect solution. Our advice is to not rush into accepting their offers since they are probably just disguised trouble.
Luckily, today we will tell you how you can spot a credit repair scam. Hopefully, you’ll manage to stay away from even bigger problems than the ones you are dealing with now.
In the Business of Scamming People
As stated above, being desperate, unstable, and unable to concentrate on even the simplest thing will make you a victim of these services. You will be easily fooled and manipulated in signing things that you don’t need but look good on paper. A credit repair service is a business like any other, make no mistake about it. The sole purpose of a business is to make money, and that is why some services will scam their customers even for a measly profit.
Here are a couple of examples you might find useful next time you want your credit to be repaired by these services.
Common Credit Repair Scams
- Some credit repair services will claim that they can get your credit file for a small fee. You can do that for free by yourself. You won’t get your original credit file but a copy, but that’s not the point.
- Another thing that they can do for a certain fee is to correct any mistakes regarding your information. You can also do that by yourself for free. Just contact your lender and give them your correct personal information.
- Some credit repair services will also correct any errors that your credit file may contain such as a tax that you have no connection with. Those errors happen because someone made a mistake and now that error shows up in your credit file. This mistake can affect your credit score if you don’t fix it. You can eliminate that error for free by contacting your lender, but do this as soon as you find out about it.
- They will not give you the contract to read before you sign it, and this can be extremely dangerous since you don’t fully know what you just agreed to.
- Also, if the credit repair service does give you the contract, they will intentionally leave out some precious information such as the amount of money you have to pay for the services they are providing, your responsibilities, the name of the company and so on. Pay very much attention to what you are reading and signing and make sure you ask all the questions that come to your mind.
- Up-front costs are another thing to look out for. If a credit repair service asks you to pay up-front, run. How can a service ask you to pay for something that they might not be able to fix, as a default for example? You pay after every default has been eliminated successfully, not before. The costs can get quite high, so asking for upfront costs plus other taxes can hurt your wallet.
- But the biggest lie you can get from a credit repair service is the fact that it can eliminate bankruptcies or negative information right away. No one can do that. Negative information can be eliminated from your credit file if there is sufficient ground to do so. Bankruptcies require 5 years from when it was first listed to be removed.
Are All Credit Repair Services A Scam?
Well, definitely not. But keep your eyes open when you are looking for such a company and always do as much research as you need to be sure you will not fall into some trap and lose lots of money. An honest company will discuss with you about the financial situation that brought you there before suggesting any options. Most importantly, they will present to you the contract that includes all the relevant information. Also, they will make sure you understand all the facts. This way, you can make sure they are not a credit repair scam.
We hope that this article will help you avoid a credit repair scam. Your finances are at stake, and you might end up losing more money on a service than on your debt. For a reliable credit repair service, get in touch with the team at Clean Credit.