Avoid Credit Counseling Scams

Avoid getting caught in Credit Counseling Scams! Yes, hundreds of consumers a year get sucked into these counseling scams for improving your credit. But watch out for them. Not all of them are really going to help you. Most just want your money. There are several ways you can be sure that it’s the real thing and not a scam.

First, check to see if the company is legit. You can do this by getting online if you have a computer or going to your library and typing in the company name in the search engines. Read a few reviews of the company, check to see if anyone has been scammed by them. If you don’t have a computer or can’t find anything online you may want to call the local Better Business Bureau. Ask them if they’ve heard of the company you are looking in to and find out if there are any complaints. To avoid a counseling scam you don’t want a company that has had three complaints against them in a year.

Never send money before you see any services. If you don‘t send money chances are you will avoid a credit counseling scam. This is one of the biggest ways consumers get ripped off. A company will ask you to pay them up front before they do anything. They might they need money to do it. This is not true! If they are a legitimate company they will already have money.

To avoid a credit counseling scam remember that what’s too good to be true normally is. Promises are a big no-no especially if they sound too good to be true. If they are telling you that it’s going to be an easy thing to recover from think again. Debt isn’t easy, it may have been easy to get there but it won’t be easy getting out. Not unless you just landed into a whole bunch of money and chances are if you are looking into this you haven’t. Credit counseling scam agencies have been known to tell their consumers that once they are done their credit report will be wiped clean. It is a fact that once you have a bad debt on your credit it stays on your record for 7 years, if you went bankrupt it stays on your credit for 10 years. The only time something is wiped away is if it was an error. Run away if they are telling you different, this will help you avoid being scammed.

The best way to avoid being scammed by a credit counseling agency is not to be in the position of having to use one. But if you are, then research companies in your area. Ask someone you know that may have already been in your position. Some of the best places are the nonprofit organizations because you already know they aren’t taking your money or very little of it. They are there to help, they may even offer classes to help you get out of debt and manage your credit better.