subject: Avoiding Credit Scams [print this page] Scammers, such as those who target people who want to eliminate or alleviate their debt, may only get you into more financial trouble if you enlist their services. If you're dealing with a large amount of credit card debt, how do you know if you're entering a potential scam? Here are a few tips on how to identify credit repair scams:
If you have to pay for credit repair before you get results, it's likely that you're working with a scammer. If the service you're working with doesn't divulge your legal rights or outline the terms of your transaction or contract properly, it's probably a fraudulent operation.
If you've encountered companies whose representatives tell you to directly contact an agency that does credit reports, you're at risk of getting scammed. If you're advised to create a new identity for a clean credit slate, stop working with the company as soon as possible. Aside from getting involved in credit fraud, you'll get into identity fraud as well. Your involvement can result in prosecution if you apply for credit with false info - lying on credit applications or misrepresenting your Social Security Number could land you in jail.
When you're faced with a lot of credit debt, you may be tempted to hire people who advertise "guaranteed" credit repair. However, many of these professionals are often scam artists who'll only take your money and give you zero results. The best recourse for this type of problem is the do-it-yourself method (with help from real financial advisors and legit lenders, of course). Once you've recovered from credit card debt, take steps to prevent unmanageable debt from happening again by reviewing your credit report periodically, and ensuring that it contains correct information. These checks can also help you prevent identity theft or nip it in the bud if it occurs.
