With literally hundreds of credit counseling companies trying to market their share of the market, it is unfortunate that many customers are suckered into credit repair scams. Learn how to avoid them here.
Credit counseling can be an attractive solution to those caught in a debt trap.
Related to credit repair scams:
A lot of people are under the belief that credit counseling agencies are here for some sort of ‘charity’ and they are registered as non-profits.
Although it is true that several non-profits, which would take very little of your cash, it is also true that a lot many of these agencies do work for a profit.
Most of the credit counseling agencies are here for gains.
And it is not surprising that intense competition is prevailing among them.
Yet there are lots of credit repair scams too, which you will need to avoid.
1. Always Check For Credit Repair Scams
Before you zero in on any credit counseling agency, you’ll first of all need to check whether it is a legitimate company or not.
You can accomplish this by looking online and searching for the firm’s name on top search engines.
Next, go through a few reviews of the company and find out whether they have completed the jobs they have been paid to do previously.
You can also check about the reputation of a credit counseling agency through associations such as the regional Better Business Bureau.
You can speak to such organizations and find out whether there are any complaints on the particular company.
After all, you don’t need a credit counseling firm that has some complaints against them lodged in the last year or so.
2. Sending Payments
You should always be wary of a credit counseling agency that needs you to send money before you find any of the services.
The best credit repair companies always offer a free consultation to give you informaiton first.
If they do ask for payment, make sure you are sending it using a secure website link.
This is one of the biggest ways that people tend to get ripped off.
In these kinds of scams, the company will ask you to cough up a substantial quantity of money before they do anything.
Bear in mind, legitimate companies won’t do so and will charge you only after providing you with at least some support.
You must always take your time if it seems too good to be true.
If someone tells you they can help you get out of debts within a matter of a few days, then you’ll need to think again.
Bear in mind; debt is always easier to accumulate; paying it off is a completely different thing.
There are lots of credit counseling scam agencies which are known to tell their customers that their credit report will be wiped clean once they pay off their debts.
This is true to some degree, however, it takes time since it is a known truth that bad debt stays on credit report for at least seven years.
The best way, therefore, to avoid credit repair scams is to pick a reputable credit counseling agency.
You must first of all research credit counseling companies in your field before you choose one.
Asking someone who has been in your position is a fantastic way to start with the process.
Taking all these precautions can help you avoid credit counseling scams in the future.
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