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Credit Repair Rip Offs – Tips to Protect Yourself

by Jim Eastman
I’m sure you’ve heard stories of people who have hired credit repair companies in hopes of improving their credit worthiness, only to be taken in and cheated by credit repair scams. The profusion of credit repair scams hurts consumers in two ways (continued below)

Credit Repair Rip Offs – Tips to Protect Yourself

- obviously, by cheating many of them out of their hard-earned money, but also by giving the entire credit repair industry a bad rap. The latter has the effect of discouraging people from seeking help, even when they desperately need it.

If you hope to be protect yourself against this scenario, a good start is understanding how such scam artists operate.

To begin with, consider the type of victims they are going after. These are usually people whose credit is “shot” and are over their heads in debt. They are desperate to get help and will believe just about anything they are told if they believe there’s any possibility of getting out of their bad situation.

Most such people are on the verge of declaring bankruptcy, or at least are giving it serious thought. These On the type of people who are the targets of credit repair scams.

Why? Because they feel a sense of urgency! they’re of the opinion that if they don’t do something, and do it fast, disaster awaits them in the near future. They just don’t want to believe or accept that the credit repair process doesn’t happen overnight – that it can take 6, 8, or even 12 months to accomplish.

But the irony is, when they seek help from an unscrupulous credit repair company, on only does the company not solve their problems – it leaves them even worse off than before.

Here are some red flags To watch out for if you hope to avoid credit repair scams

  1. They promise unrealistically fast results. They will dispute every negative item on a credit report. And in fact, they may get a good many of them deleted if the credit bureaus are unable to verify them within the 30 day the law requires. But if they are verified at some later date, the negative item goes right back on the credit report!
  2. They may even go so far as to use illegal tactics. If a company asks you to get a new Social Security Number – in effect, giving you a new “identity” free of any negative credit history, you would be well advised to run the other way! This is most definitely illegal, and can get you in a whole lot more trouble than the “mere” fact of having bad credit. Avoid it like the plague!
  3. They insist on full payment up front. While a legitimate company might ask for an reasonable initial fee for a credit report announces and/or consultation, if the company demands their ENTIRE fee be paid up front, that should raise a red flag. They know that once you get wise to the fact they cannot deliver on their promise, you’re not likely to continue to pay them. But of course if they’ve collected everything up front, you’re out of luck!

It’s not impossible, don’t even difficult to avoid credit repair scams. But if you allow your judgment to be clouded by desperation, you’ll become an easy target. Keep a cool head, do your research, and watch for the warning signs.

About the Author
A favorite topic of writer Jim Eastman is business ethics. If you have problem credit, don’t hesitate to seek help from a reputable company. But you’ll need to avoid credit repair scams by arming yourself with the proper knowledge. Visit for the free report “The Danger Signs to look for in a Credit Repair company”

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