Do You Know How To Spot Credit Repair Scams?

They're everywhere - on the Internet, on TV, on magazines and newspapers - and they claim they can solve your credit problems in a snap

. Don't fall prey to these scam artists. Avoid companies that tell you truthful information can be changed or erased to improve your credit or that only the credit-repair company can remove old or inaccurate information. These claims are false.

The very moment the company asks you to pay a huge amount of cash in order to repair your credit, start thinking twice. Even if they offer you money back should they fail to do their job, don't be fooled by that either.

Changing Your Credit Identity

If you have filed for bankruptcy, you may be the target of a credit-repair scheme, often called "file segregation." They will offer to disguise your bad credit by setting up a new credit identity for you. Don't fall for this. This is a crime punishable by law. You could end up in jail or have to pay hefty fines for this.

More Scams To Beware Of

A lot of us want the easiest possible way out of our credit predicament, and this is also where credit scammers come into play.

Avoid credit by phone schemes. Pay-per-call or 900-number services have become a popular vehicle for credit scams. Advertisements promise that "guaranteed" credit or cash loans are only a phone call away. All these poor consumers would get are the following - a second-rate, poorly-written guide to establishing credit and/or a list of banks that offer low-interest credit cards. This isn't exactly the right way to get credit.

Avoid gold or platinum card offers. There are a lot of promos floating around with gold or platinum cards promising to help you build your credit rating. Although they may sound like all-purpose credit cards, some cards only permit you to buy merchandise from special catalogs and will not help you obtain other credit. And to top it off, you may be asked to call a pay-per-call number for assistance. And thus, a really huge phone bill.

Finally, be wary of the checking account scam. You can recognize the scam once you get a leaflet advertising low interest and fast approval if you apply for their card. And when you call to set up your application, they will ask you for your checking account number as a security question. Before you know it, you'll be getting unauthorized charges to pay for your so-called easy approval credit card account.

Make sure you report these scams the moment you get wind of them, either to the Consumer Protection Hotline or with the Attorney General's Office. Don't make the mistake of sharing your personal information with companies you don't, and shouldn't trust. After all, you don't want to become an unlikely and unwilling victim of a credit card repair scam.

by: Florence Carver

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