Home » Finance » Credit

How to Steer Clear of Credit Repair Scams

Jun 15, 2008
If you're a consumer who has had some financial difficulty lately, you're not alone. Perhaps your credit score isn't everything you'd like it to be, and you're having trouble getting credit or even getting a job because your score is lower than it should be. However, if you're desperate for a quick fix, be careful. Scam artists look for just such a situation and can present you with a credit repair claim that looks too good to be true. Well, guess what? It is.

One of the more common credit repair scams to look out for is "The Inside Job". The perpetrators of this scam will promise you that they can easily repair your credit with the help of a close friend or associate that works within one of the major credit reporting bureaus. This is just as ridiculous a claim as it sounds; don't be swayed into parting with your hard-earned money by chasing such an absurd scenario.

Now, there are ways to get incorrect information deleted from your report, and this can help improve your score. However, you can do this yourself. You have the right to report that something is incorrect and if it's determined that the credit bureau has truly made an error, that information must be deleted from your report -- and usually within a fixed period of time.

Of course, there are companies that can do this for you, but why would you spend the money? You can simply do it yourself. And of course, you're not guaranteed that someone who's promising to repair your credit report will actually do so. Most likely, they're just out to take your money, or even worse. Again, take care of mistakes yourself and save yourself money and headaches.

Other scammers will claim that they can 'convince' the credit reporting bureaus that the debts on your report are not yours or otherwise invalid. You are the one who incurred those debts, so you should know that no one is going to 'convince' the credit reporting bureaus that those obligations are anyone's but yours.

If a company tells you they can remove it, they're wrong and they're just out to get your money. Even if they try to make an attempt at resolution, they're not going to be successful and you're going to be out what you've paid them anyway. And the debt will stay on your record until it ages off or you pay it.

Yet another scam invokes the promise to miraculously make your old, unsatisfactory credit report disappear and replace it with a brand new, clean one. Scams that involve dismissing your old credit file and generating a new one to take its place may also involve issues of identity theft and fraud, so steer well clear of anyone making these claims.

Potentially the most financially damaging of the common scams, another type of swindle begins with an offer to help repair your credit that quickly becomes an enticement to accept a loan to pay off your debts. These loans typically come with disastrous interest rates attached and huge penalties for late payments. Never enter into a loan agreement under the auspices of a credit repair solution.

Look out for the 900 number scams. If a company tells you to call a 900 number to find more information on their services, then look elsewhere. The 900 numbers will charge you per minute for the phone call.

The simple truth is that there are no shortcuts. You can request a copy of your report from any of the major credit reporting bureaus, check it carefully for accuracy, and dispute any false information. You can pay off your debts and manage your credit wisely. But any attempt to use a quick-fix solution will just result in you losing your hard-earned money to a scammer. Be aware and use your common sense and you will have no trouble avoiding these common credit repair scams.
About the Author
Paul Cameron is editor of Personal Finance at i-KnowHow | Information for Life, where you'll also find ideas and tips for hobbies, home and garden, technology, family and much more.
Rating:
Please Rate:
(Average: Not rated)
Views: 169
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources