Advance Fee Loan Scams - Credit Scams

When you come across financial pressures, you seek fast relief. In this situation, companies nationwide appeal to consumers with poor credit histories. They promise to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. In return, they ask for a fee. But in many occasions, they fail to deliver what they promise. After you pay these companies, hundreds and thousands of dollars as up-front fees, these companies do nothing to improve your credit report and many of them simply do not turn out.

Turning to a business that offers help in solving debt problems may seem like a reasonable solution when your bills become unmanageable. Be cautious. Before you do business with any company, check it out with your local consumer protection agency or the Better Business Bureau in the company's location.

There are generally two types of scams:
  • Credit Repair Scams
  • Advance-Fee Loan Scams

Credit Repair Scams

You have seen the ads in newspapers, on TV, and on the Internet. You have heard them on the radio. You have got fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims.

Advance-Fee Loan Scams

These scams often target consumers with credit problems or those who fail to get fair amount of credit. In exchange for an up-front fee, these companies guarantee that applicants will get the credit they want, that is, they will be able to obtain a credit card or a personal loan.

Debt Consolidation is at present the most popular way to get rid of your debts. It comes to you absolutely free of cost. All you have to do is sign up for a free telephonic counseling during the initial stage. Once you enroll with a debt consolidation firm, a debt counselor analyses your debt status. Then the firm negotiates with your creditor and reduces the total debt. Your debts are then restructured in easy monthly instalments. In this manner, your late fees and taxes are also eliminated and your account is re-aged.

Last Updated on: Thu, 13 Nov 2014