Ever heard the expression, “If it seems too good to be true, it probably is”? When you have bad credit but want to buy a home, it’s easy to think that claims of paying a fee to have your credit score increased will help solve the problem.
Think again.
Freddie Mac recently issued a warning to buyers about very specific scams that claim to give your credit score a boost so you can buy the house of your dreams.
Disputes with Credit Bureaus
Con artists are taking advantage of a new FICO program – FICO Score Open Access for Credit and Financial Counseling. The program is supposed to give people access to their FICO score and education materials to help learn how to build their credit profile the right way.
Instead, buyers are encouraged to contact credit bureaus repeatedly to dispute defaulted debt. If the bureau misses responding to one dispute, the debt temporarily falls off the report, falsely increasing your credit score. But the fix is temporary and your score will go back up again.
False Claims of Identity Theft
We probably shouldn’t have to say this, but any false claims of a crime committed against you are going to land you in hot water with law enforcement. Scammers aren’t concerned. They encourage buyers to make false accusations of identify theft complete with false police reports on mortgage applications.
Lenders, though, take identity theft very seriously. They investigate claims when they show up on applications. Buyers who fall for this tactic will be caught.
Misuse of Credit Protection/Privacy Numbers
Con artists will tell you to purchase a credit privacy number which is something typically used by celebrities and politicians in place of a social security number to keep their credit private. Buyers are told to get one to create a clean (and misleading) credit profile.
Once discovered, and you will be discovered, you as the one using the number, could be implicated in the crime of identity theft. Not only are you denied the mortgage loan, you could face legal consequences.
It’s hard to wait the months and years it can take to raise your credit score up to a good level. The quick schemes that cost you money will eventually cost you the ability to buy a home or even your freedom. Take it slow and steady and don’t let yourself fall for a scam.
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