No doubt you’ve heard about those who have hired credit repair agencies for help to improve their poor credit, but to have instead been taken in by credit repair scams. In order to understand what must be done to avoid being taken in by such unscrupulous people|these scammers|these crooks}, you must learn how they function.

They know that those who find themselves over their heads in debt are so desperate as to grasp at anything that is told them, in the hope that these fake agencies are really able to lead them out of financial despair, so they can regained a peace of mind. They in many cases are so disheartened by the system, which is downright cruel to people who have problem credit, that they’ll take desperate measures to get relief.

Most people looking for help are close to bankruptcy, or at least contemplating it. These are the people who are most vulnerable to credit repair scams.

Why is this? Because they are impatient, and do not know that solving their credit problems requires at minimum 6 - 12 months. Very often, these people feel like time is running out on them, and unless they act right now, it will spell future disaster. Ironically, when they sign up with these scam artists rather than solving their financial problems, they will find themselves worse off than ever, because they’ve been chasing a mirage.

Here are some red flags to avoid credit repair scams:

1. They promise the impossible - these unscrupulous companies promise they will get all adverse accounts deleted from your credit report. They will guarantee you that your credit score will improve within the next 2-3 months.

They try to accomplish this by disputing everything negative in your report. The bureaus may initially remove some or most of the disputed items that they can’t verify within the required 30 days. In the meantime, it will seem that this fraudulent agency has delivered on its promise.

But if the credit reporting agencies can verify the negative accounts at a future date, they’ll end up back on the report - plus you will have earned the reputation of being a hustler!

2. They play fast and loose with the rules - they actually break the law with their tactics, such as using the identity of others to improve credit, by offering to give you a new Social Security Number, so that you can “start your financial life over.”

Look out! Such tactics will only land you into more trouble. It’s not only against the law to take up a “new” SSN, the number could have a police record attached to it, or any such things that will be far worse that having bad debt.

3. They ask for full payment up front - these credit repair scams ask for full payment before rendering their services. This is understandable, because they realize that you will eventually find out that they cannot really remove bad credit or improve your credit score as quickly as they claimed. And at that point, they won’t get paid.

Know that you can avoid credit repair scams. Just remember that no matter how desperate your situation, look closely for the warning signs!