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Credit Scams Can Ruin Your Credit

By Brian Anderson
Published: Wednesday, October 14th, 2009

Many consumers right now prefer using their credit cards than using cash for their spending. Not that cash is already an outdated form of medium for exchange, but credit cards is already more convenient to use than cash. You do not have to bother carrying around those greenbacks on your wallet to spend, and also, you do not have to limit your spending on the number of greenbacks that you have. In short, credit card has made spending for consumers easier and more effective. However, there is also a disadvantage in using credit cards. One of which is overspending. Because many Americans can now spend using credit cards, many are actually tempted not to regulate their spending, and worse, overspend. That is the reason why many people are actually looking for good credit score tips. 

However, it is not only over spending that can ruin your respective credit accounts. Wrong credit reports and cases of identity theft also do big damage to credit consumers. It is a good thing that there are a lot of credit score tips and legislations passed by the government to protect credit consumers from these types of situations. However, there is still another case that may ruin your credit account altogether. These are credit scams. The sad fact here is that, most often than not, many victims of credit scams have become victims just because they where not aware of the nature of how credit report works, or where ignoring credit score tips. Here are some of the most common credit scams and how they work, so that you can avoid them in the future. In the end of the day, this may prove one of the most important credit score tips that you have taken.   

  1. Scams on credit repair
    Given that there are a lot of consumers who actually wants to have their respective credit reports pleasant to see, many fall into the trap of actually trusting their credit accounts entirely to credit repair agencies that offer incredible, but unrealistic, credit repair claims. It is true that there are many credit repair agencies that already helped a lot of consumers. However, there are also credit repair agencies that are actually scams, these fake credit repair firms usually claim to erase all negative credit account histories. The fact here is that, it is impossible to erase a negative credit report history, when that credit report is valid. Many consumers already spent a lot of dollars to have their credit history erased, only to find out that it is not actually possible. Remember that credit report companies are only there to repair inaccurate credit history, not to erase them. 
  2. Scams on advance fee loans
    Also, there are a lot of consumers who hopes to have low interest credit even though they have incredibly low credit scores. These people often find themselves to be a victim of advance fee loan scams.  This scam usually offers to arrange low interest rates for a client regardless of that client’s credit score, in exchange for a fee. Remember that it is impossible for you to get low interest payment terms when you have low credit scores, so don’t fall into this trap.  

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