There are several ways you can protect yourself from credit repair scams. Different companies out there that tell people they can eliminate the negative elements of a credit report within a short period of time.
Unfortunately, it is important to realize that nobody can make this guarantee. As a matter of fact, a good percentage of these companies can't deliver what they promise. So it is better to try to repair your credit on your own. Here you will learn to protect yourself from credit repair scams.
If you are looking to repair your credit, and you have your eye on a particular company, it is important that you take the time to research the company. You must ensure that you know and understand the true identity of the firm you're considering working with, and do backgrounds check through the Better Business Bureau. If not, you may actually work with a crook or a scam company which is simply trying to obtain personal information about you, and take your hard earned money.
What to Do If You Did Not Request an Offer?
If you didn’t fill out a credit repair form before the conversation you must be very careful. Basically, there are companies which work with people that have a fraudulent telemarketing company, which go through directories and call lists in an effort to drum up some business.
If you are looking for a loan, you should always make the initial contact either by filling out an online comparison form or contacting them by phone. You should only do this after you having studied thoroughly the company and they have found to be completely legitimate.
You should ensure that firms don't guarantee to remove negative credit from your credit report. It is important that you know and understand that no company can backup such a promise. Now, if they say they will help you do everything possible to eliminate the negative lists of your credit, this is a little different.
There are legitimate ways in which a company can help with this effort. However, you still want to make sure you check out the Better Business Bureau. If you follow the steps listed here, you will be able to protect against credit repair scams quickly.
There is no doubt you have heard many stories of people who have sought the help of a credit repair company with improving their bad credit report, only to be credit repair scams. Before understanding what path to take to protect yourself against these scammers, you should be aware of how they work.
They are all very aware of the desperation people are in the midst of financial difficulties – desperate enough to believe that their situation is completely useless, and too willing to believe anything to solve their problems and return to a normal life. Often feeling so overwhelmed by the company, which is utterly ruthless towards people in their situation, they will take steps to improve the eruption of their situation.
Most people in this situation are on the verge of bankruptcy. They are those who are most vulnerable to credit repair scams.
Why? Because they feel such urgency, and are not able or willing to accept that the credit repair process can take up to 12 months. Very often feeling like time is running out on them, and unless quick action is taken, it might be too late. Ironically, when these companies are hired, rather than solving their financial problems, which are in worse shape than ever, They are scammed!
Here Are Some Red Flags Credit Repair Scams To Avoid:
1. Promising results that are not possible – these fly-by-night organizations say that all accounts have withdrawal effects of its report. That ensures that your credit score will improve in a very short time.
They try to do this disputing everything negative in his report. The offices that initially eliminate many of the negative accounts cannot verify it in the space of 30 days. Meanwhile, it might seem as if this organization has kept its promise fraudulent.
But later, the Bureau may check the negative element, and then ends back at the credit report – plus they have earned a reputation as a swindler!
2. Urge to violate the rules – actually violated the law with their tactics, such as the use of the identity of others to increase your credit in general, offering to give you a new Social Security number, so that you can “start your financial life finished “.
Attention! These tactics will end up costing a world of trouble.
Not only is it illegal to take a “new” Social Security number, the number might be a police record attached to her or anything like that will be much worse than having bad debt.
3. They insist on full payment at the beginning – A dead “given” is when full payment is required before providing any services. This makes sense because he knows he will discover that in fact cannot delete bad credit or improve your credit score as promised. And at that point, you refuse to pay.
Credit repair scams can be avoided. Just remember that no matter how desperate it gets, do not ignore the warning signs!
A credit check is usually done to verify if you qualify for a loan or any other form of credit based on your past credit performances. This will reveal your past as well as your current credit transactions with different lenders and how you deal with them. Therefore, a credit check is a reflection of your credit performance in general. It works like a report card that reveals whether you have “passed” or “not” on a particular topic.
Credit checks are conducted by lending institutions such as credit card companies and banks for people wishing to apply for a loan or other form of credit. In addition, credit checks could also be accessed by a homeowner to question if a person would be a good tenant or not, as reflected in their past credit performance. Insurance companies also run credit checks on individuals wishing to use their insurance policies.
You can get your credit report, which contains information concerning the statistics of any of the three major credit reporting agencies. In addition, you can get your free credit report as outlined in the FCRA or Fair Credit Reporting Act. Under law, everyone is entitled to receive a free credit report from any of the three major credit reporting companies in the United States once a year – Experian, Equifax and Trans Union. Your credit report contains your personal information (such as name and address), how you've paid your past and previous bills, and any defaults you have such as late payments and whether you filed for bankruptcy.
To get your free credit report, you need to complete the required form through a centralized website credit report in any of the three credit bureaus in the United States. You are required to provide certain basic information including your name, permanent address, social security number and birth date. Your credit report is important to insure itself against any attempt of identity theft such as misuse of credit cards and other forms of fraud. In addition, you must update your credit report regularly as lending institutions would be using such reports to determine if they are worthy of being awarded the loan you have requested.
After receiving your free credit report, you should read each section carefully. All aspects should be included in calculating your credit score. So make sure you have paid attention to them. Check your report for any discrepancies and make sure it has not missed any payments at all. Your credit report also comes with a list of persons or business entities that have requested credit information. You can also check the names of such agencies or entities that you are familiar with.
Your credit report is used in the operation of a credit check for a loan or any other form of credit request. Therefore, make sure it is free of discrepancies or erroneous entries. Note that this report reflects the performance of your credit – make sure you do not stumble anywhere so that your loan application would always be a success.
Having forgiven debt without going through bankruptcy may sound like an impossible wish, but the companies providing these services are using a real law on the books.
According to national economic security and Reformation Act NESARA, the mortgage and bank debt can be erased in an effort to compensate consumers for the bank and government fraud. The NESARA equipment has been authorized to pay up to $ 9,000 per card financial institutions.
Hector Milla editor of "Site rid of credit card debt — target = "_blank" href = "http://www.GetRidOfCreditCardDebts.net"> http://www.GetRidOfCreditCardDebts.net – said;
"… That is why for most people it sounds like a plan of debt forgiveness. The Act is designed to compensate consumers for the bank and government fraud by erasing its debt, the repayment of its loan, and the release of the consumer to be able to begin again … "
One of the reasons for the Law was to show the public that the Government is aware of the horrible interest rates credit card companies and banks charged. Because we live in an economy credit, some people were able to agree not to pay those charges in order to obtain a credit card. This event is designed to make a moral statement to the public including usury practices of companies in the unregulated free market, and have the chance to erase their debt and move on.
"… With the state of the economy as it is, many credit card companies are willing to remove up to 70% of debt from the creditors to get all you can before things get worse. There really is no hidden agenda here. A customer can pay his remaining debt after five years from 40% to 70% deletion is better that a customer goes bankrupt and the total amount lost in the bank. Most banks and credit card companies are willing to take what they can Debt relief plan after meeting in situations similar to those of your clients … "Said H. Miller.
Further information on the confidence with major companies for the payment card credit debt per visit; href = "http://www.GetRidOfCreditCardDebts.net"> http://www.GetRidOfCreditCardDebts.net
About the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
The Internet is full with free credit report offers. So, you decide to join one since you’ve heard that they really are free. However, you find that it was free for only a week or so! These websites offer credit report monitoring to help see the way your credit score varies in time, which is a great service for monitoring the way your debt balance influences your credit score, but it is not at all free!
According to the Federal Trade Commission there is only one website that provides a free credit report and under government law you can obtain it once a year, the website is AnnualCreditReport.com. This is a central website that was set up by the three nationwide consumer reporting agencies, Equifax, Experian and TransUnion. If you want, you can get one merged report or 3 separate ones over the period of 12 months.
Getting a Free Credit Report More than Once a Year
In some cases you are entitled to get a free credit report even if you’ve gotten one within the time period of one year. The FTC states:
“Under federal law, you’re entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft. Otherwise, a consumer reporting company may charge you up to $10.50 for another copy of your report within a
Thousands of dollars are charged to victims credit card and in some cases scammers apply for a loan under the victims’ names. Unfortunately, credit card scams are rising every day.
Con artists use various methods to deceive and manipulate you, making you believe they are legitimate and convincing you they can help solve your financial situation. For now, we will focus only on one of them, but, once you understand how to apply this Telemarketing Credit Fraud Prevention Formula you will be able to identify if the offer you are given is fraudulent or not.
The Scam or, One of Them!
With the financial situation these days and the competition among credit companies, more and more people are applying for lower interest rate credit cards. Criminals take unethical advantage of the situation.
A recent method identified by the Federal Trade Commission shows con artists pretending to be financial institutions offering you a lower interest rate on your credit cards. Striving to live a financially balanced life and with temptation of the “best deal till now”, you decide to take action. Unknowingly you are caught in the “fraud net” and before you realize what really went on, you get your monthly bank statement only to see that you’ve applied for a $5000 loan without a dime left in your account, bought a car that you never drove and even paid for expensive gourmet meals that you’ve never tasted.
A Recorded Scam Attempt
The video below is a recorded fraudulent conversation where the criminals offer a consumer a low rate interest card offer. View to see how the criminal “phishing” for the victims private credit details.
Developing the Formula
After doing proper due diligence and by researching governmental, educational websites, this and other videos over the internet covering the topic of credit card fraud, I’ve identified specific patterns con artist use to disguise themselves, gain your trust and “phish” for credit information.
One of the most interesting things I found is that scammers will always find excuses to why they can’t give you there office phone number or in some cases they’ll give you a cellular phone number (making sure they can’t be traced). A trustable and respected financial institution will have a toll-free number 99.9% of all times.
Besides if it were a legit offer the company could supply you with alternative ways of entering your credit details rather than just shooting out “so, what your credit card number?”
These facts opened my eyes! I decided to create a formula anyone can apply to reduce and prevent telemarketing credit fraud – guaranteed!
Ask These Questions to Prevent Credit Card Fraud.
If they are too persistent about your credit card details or your personal information try to find out if you can get in touch with them directly by phone.
A polite, yet straight forward question to ask would be something like:
You caught me at a really busy time, let me get back to you in a few minutes – What’s Your Telephone Number?
That alone will catch them off guard. Make sure you get a number!
A legit company would naturally have a 1800-, or fixed land line telephone number for customer service, wouldn’t they?
In other words… if the crook’s answer resembles anything like “you can’t contact us”, or, “we contact you” their offer is 100% Bull S*** and even if the offer were legit, I personally wouldn’t want “long term financial services” from a company that doesn’t have a customer care center, would you?
If they did give you a 1800 number most likely the company is legit. However, make sure you write down the number and call them back. It’s very important that you call them, this way you know that you can really get in touch with them.
I don’t give away my credit card number or credit details over the phone, what solution do you have for people like me?
I love the 21st century everything is digital. Just to let you know today: you can touch tone your details keeping them safe, 128 SSL Encryption online or the old fashion way of visiting the office. You must get an alternative than just shouting out your credit details over the phone.
I want you to really grasp this! Credit card companies pay thousands of dollars for alternative ways there clients can enter their credit details and keep them safe.
So there isn’t any reason on earth you should deal with a company that doesn’t offer you safer ways to enter your credit details, right?
The company would, at a bare minimum, give you an address where you can visit them as well. If you didn’t get one after asking, or, got a cluttered answer, I advise you to hang up the phone, what do you think?
The whole idea behind this credit fraud prevention formula is to identify weather the offer is legit or not. By asking questions you are doing 2 things at once:
Taking control of the conversation
Showing the Crooks that you won’t be fooled
Remember you don’t need to be polite when you feel someone is trying to take your money, stand up for what belongs to you and ask the questions with full confidence. A legit company would appreciate you asking these questions. It only shows that you care about yourself and your financial well being.
By now you might have a few questions that you see better to ask, if you do, by all means, post them. Your questions can help more people prevent credit card debt!
Sometimes liquidating your home equity can be found useful when it is needed for consolidating debt, home improvement or for other expenses. When you contact a bank or financial institution you find that the rates you are quoted are very high due to your bad credit score. Cash out refinance doesn’t have to be expensive. In fact, it can be very profitable and reduce your monthly mortgage payments if done correctly.
Improving Credit Ratings for the Lowest Rate
If you can afford to wait a few months, consider repairing your credit. You can improve your credit ratings by paying your monthly bills on time. If you have trouble managing your payments you may want to consider contacting a credit counseling organization. They will help you manage your payments and maybe even negotiate more flexible payments with your creditors. Once you’ve improved your credit score, proceed with refinancing your mortgage and you will find the rates to be substantially more attractive.
The Need of Cash-out Refinance to Consolidate Debt
If you cannot afford to wait several months due to your credit card debt piling up, you may want to consider applying for a mortgage refinance loan. There is a risk involved here and therefore, you must make sure that once you have refinanced you will not build up your debt again. If you succeed you can find credit card debt relief in a relatively short period of time. If not, you may find yourself jeopardizing your home. To do this correctly, pay the highest down payment you can afford and then negotiate closing costs in addition to lower rates.
Negotiating with Online Lenders
Before you actually begin negotiating rates, payments and other important issues, compare as many online lenders possible. Doing so you will get a clearer picture of the rates and conditions offered. You can then negotiate the terms and conditions by offering a higher down payment than required. Comparing mortgage lenders will also help prevent fraud, since you know the average interest rates. If you are offered a very low or high quote you might want to do a background check on that specific lender or find out why the rates offered are so.
Payday loans are great cash advances for anyone who can pay them back on time. By applying for a instant no fax payday loan you may even get approved within a few hours. They are suitable for paying an unexpected payment, going on a short vacation or to buy something you find necessary but don’t have the money at the present time. The hassle free process of getting the online fast payday loan is what makes this type of personal loan unique.
Anyone above eighteen years of age with a monthly salary and a checking account is eligible for the payday loan. Even people with a bad credit history are guaranteed to get the loan when applying for a bad credit payday loan. Due to the competitive market you may find a lender that offers you a good rate and approval will take maximum 72 hours. The cash is deposited into your checking account in a few hours or days, making access to the money very convenient. Online lenders are a great source to begin with and the option of comparing payday loan rates comes in handy.
Payday loan disadvantages
When applying for a payday loan, pay special attention to the agreement. Rates range from 10% – 30% which are considered high, and failing to fulfill the repayment on time will consequence in doubling the interest for the next repayment schedule. You have 30 days maximum to pay back the loan with the interest, depending on your repayment plan. People in debt are recommended not to use a payday loan as a debt consolidation loan because they will find themselves deeper in debt. Borrowers should pay extreme caution when dealing with online lenders due to fraud issues and reading the fine print is essential.
If you don’t have a fixed workplace or salary you will not get the payday loan no matter how much you beg and promise for it. If you don’t have a checking account you can’t write a check meaning you cannot secure the loan and the lender will not process your order. If you need cash advance but don’t qualify for a payday loan for any reason, ask friends and family to lend you the money. Anyway a payday loan only supports small amounts of money therefore, asking your close ones shouldn’t be too difficult. If you haven’t managed to get the cash you need, consider applying for an unsecured personal loan you might even find that time wasn’t so important after all.
The internet is a great place to get cash advance it is quick comfortable and cost effective. It is also however, a very easy method of becoming a victim of fraud. Most borrowers apply for payday loans to pay an unexpected bill, improve their car or for any personal use and don’t have money at the same time. This issue can put many borrowers in frustrating situation and borrowers might even sign a payday loan agreement without thoroughly reading the payday loan agreement.
Scammers are aware of this act and some use the borrower’s confusion for their own benefit. Therefore it is important to compare payday loan rates from at least 3 different online lenders.
Common payday loan scams
One of the most common scams around is when a so called lender offers a payday loan with very low rates. The same lender does not have an address or phone number on his website and requires you to send in more than the basic information. These payday loan scammers will not send you the money and eventually tell you that you didn’t get approved for the loan. Most of these scammers are interested in your identity information such as social security number, copy of passport, credit card number and other personal information. Their main goal is a fraudulent act referred to as identity theft.
Avoiding payday loan scams
It is important to compare rates from different payday loan lenders in order to get a rough idea of the standard rates payday loan lenders offer. If you come across a website where the rate is very attractive (I would say less than 10%) work with the company ONLY if you know from past experience that you aren’t being scammed. Make sure to read the agreement a few times and to pay special attention to the repayment plan and the fine print. Contact the lender (if he hadn’t contacted you yet) after receiving the terms and condition and just before signing the dotted line. It is important you always keep an eye open for lenders that don’t really own legit companies or who offers extremely low rates.
People apply for home equity loans for several reasons. Amongst the most common ones is for renovating a house. In order to keep a home at the highest market value, people renovate at a certain period. Some renovate to see a change or to improve, while others renovate because they plan on selling the house.
How Can a Home Equity Loan Help Renovate?
We aren’t always in a position to take care of sudden expenses. A home equity loan will be found useful to any one in need for extra cash to renovate and then sell the home. A balloon mortgage plan will be great when you have a buyer waiting to buy once the house is completely renovated. You can apply for a home equity loan with a balloon payment and once it is sold you pay back the loan.
Home Improvements at the Best Rate
Credit ratings dramatically influence the home equity loans rate. The higher your credit score is the better rates you will be getting. Bad credit has a negative impact on the loan’s interest rate; if possible, repair your credit before applying for the loan. If you have a buyer waiting for the renovation to be completed, make sure you have a signed contract with him and have gotten a down payment.
Avoiding Home Equity Loan Scams
While home equity loans are a great source of cash, there are fraudulent activities in the equity lending market. To avoid them, compare rates from various equity lenders. By doing so you will get a better idea of how rates are determined and when you find a too good to be true rate, chances are it is just that!