5 Simple tips that can help you avoid credit repair scams
Credit repair scams have become a common problem post recession. This article deals with 5 simple tips that can help you avoid credit repair scams and save thousands of dollars.
Simple tips to avoid credit repair scams
Here are the 5 simple tips that can help you avoid credit repair scams easily:
1. Promise to remove accurate information from your credit report
If the counselors of an organization tell you that they have a great relation with the credit bureaus and can help you remove accurate information from your credit report, then know for sure that they are lying. These organizations are likely to take the money without providing any kind of credit repair service to you.
2. Promise to persuade your creditor that you don't owe the debt
This is another kind of credit repair scam. The scammers will provide you a scheme to dispute the debt. They may also bombard you with such a complex procedure to challenge the debt that you'll drop the claim.
3. Promise to help you get a new clean credit file
Credit repair organizations can't provide you a new and clean credit file legally. The con artists will advise you to apply for a new Employer Identification (EIN) Number or a taxpayer identification number. They will tell you that by doing this you can build a new credit history.
Several consumers get victimized by this scam as the con artists don't provide the details of the entire scheme. Therefore, the consumers don't understand the implication of applying for a new identification number. They are not even aware that applying for a new EIN is illegal. The entire concept is wrong. What consumers often don't realize is the fact that even the new file will show the same name, address, history and other information.
4. Promise to clean up your credit overnight
Beware of those credit repair organizations that promise you to fix your credit quickly. This is one of the newest strategies of the con artists. They will ask you to pay a considerable amount of money and in return they will clean up your credit overnight. But they do no such thing in reality. The con artists go on draining the money of the consumers without cleaning up their credit overnight.
5. Tell you to call a special help line number
The con artists may tell you to call a special help line number and know how to repair credit easily. When you'll call that number, the con artists will try to keep you on the line for hours. The idea is to earn dollars from the telephone charges.
Finally, it is best to repair your credit on your own. This will help you save hundreds of dollars that would have gone towards the payment of fees charged by the credit repair organizations. This will also enable you avoid credit repair scams prevalent nowadays.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Justin Scott is associated with the Creditmagic Community and making regular contributions as a member of the community. Not only that, he has also written articles for different financial websites.