Beware of these credit repair scams...With so many people who are looking to repair their credit after they have been forced to declare bankruptcy, there are many more people trying to capitalize and scam unknown consumers. With so many opportunists and scam artists, it very difficult to find a reputable company who can help you in a legal manner. So lets take a look at some of the common and not so common scams.
Credit Repair - Scam #1
Being Issued a new social security number – You are only allowed to have one social security number. It is illegal to gain a second identity using a new SSN. However, con artists will offer you a new one for a fee. Since this is against the law, you will inevitably be arrested for fraud. More than likely, this so-called new social security number was stolen from another person. Take part in this and you will be accused of identity theft. While you are being reprimanded for identity theft and fraud, the thief that sold you the stolen number is laughing all the way to the bank. This is a very brilliant scam and many people have fallen for it. So no matter what the person tells you about it being legal. IT IS NOT!!!! You have been warned!
Credit Repair - Scam #2
Getting a Federal Employer Identification Number (abbreviated as EIN or FEIN) – As with the scam above, this too is illegal in assuming a different identity. Where as in this case, an EIN is a business tax id. Despite that you could get a new EIN... it would have no credit history, sofor business purposes... what's the point? No lending institution will give you better rates and higher loans if you don't have history.
Credit Repair - Scam #3
Challenging Everything Bad on a Credit Report – This is ridiculus! Although you can clean up some blemishes on your credit report, all the challenges will go on your report as well. If all your delinquencies are shown as mistakes... who's a new lender going to believe? You or the other 10 creditors. Fight for what is wrong, but don't over do it. It will affect you negatively and you'll be worse off than you were before. Your records will be kept for 7 years and a bankruptcy for even longer. Sometimes truthful negative information may be reported beyond those time periods, but it is rare. Although it's hard to prove you are trying to fraudulently erase the credit mistakes, it just doesn't work and you're going to help your credit any, in fact it will be more marks against you.
Credit Repair - Scam #4
Clean Credit Scam- They claim that they clean your credit fast and use their contacts to get you a mortgage (or credit card or loan). This is one of the more recent credit repair scams and coincidentally it is also one of the most expensive. Con artists dangle the promise of needed money or loans in front of desperate consumers as an incentive for the consumer to pay them up front fees that never seem to end. Some of them actually claim to legit credit counseling agencies, while others imitate mortgage companies. And since there are genuine community nonprofit groups that really will help to teach the consumer and help them to find affordable mortgage loans, scammers may also try to imitate this. Any reputable community-based organizations will tend to focus on education, and they don't charge pikes of money to do it. They also work with lenders and government agencies you should have already heard of and are able to prove it. Credit Repair - Scam #5
The 900-number for details on how to fix your credit.- This is a pitiful scam but it is still effective, and is often combined with any of the others mentioned above. While you are looking for help, the con artists are looking to keep you on the line as long as possible and make money from the per minute charges. It is just like every other 900 number scam. However this one is also easy to spot and work through. The Most Trusted Sources For Credit Repair Are Listed Below Equifax Score Watch Now!  LifeLock  Lexington Law Firm  |
