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Things You Need to Know About Credit Score Scams

By Ruth Racey
Published: Saturday, October 9th, 2010

If you have a bad credit score and you have a lot of debts to pay then you are mostly looking for a method to help you repair your score fast. Credit scams occur when people are desperate to improve their credit scores and the result of these scams is usually very bad. These scams not only cause people financial damage but they can also get the victims in legal problems. This article will help you understand how credit score scams occur and ways you can protect yourself. 

Understanding How These Credit Score Scams Work 

Fake companies that scam innocent people usually use the internet to advertise. These companies offer to help people who have bad scores and they offer services through which your score will improve. Many of these fake companies take a fee from innocent people to remove negative ratings from their reports and they use devious methods to temporary remove entries from your report. A common devious method of temporary removing entries is to dispute several items on the report and improve the score. This method does not work since the bureau will re enter the negative entries once they find that there was no actual error on your credit report

Staying Away From the Worst Scams 

Fake companies often convince people to change their social security number and begin life with a new identity so that their old credit score doesn’t affect their lives adversely. This is by far one of the worst score scams since the victim of this scam will be caught and he will be penalized through legal punishment. Some companies also offer their services for a reasonable price but they do not mention that this price is only for a limited time. After the trial period is over these companies charge your card with a significant amount and they claim that they have charged their fees. 

Ways to Avoid Credit Score Scams 

The best way to avoid these scams is to stay alert and stay away from companies that promise to fix your score for you. These companies often use illegal ways and ineffective ways to fix your score and the result of opting for these services is generally not good. Instead of opting for such offers you should consider opting for safe services like credit counseling and credit consolidation. You should also consider reducing your expenses, using cash instead of only using credit cards, make a monthly budget and pay your bills on time.

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