Have you been tempted by credit repair promises made by infomercials on TV or the ads all over the internet?

These credit repair companies promise to fix your credit problems, increase your credit score and remove bad information. Some will even promise to increase your credit score for good. It sounds like a dream come true.

Unfortunately these wild promises also come with a huge price tag - a fee that you can’t afford to pay if you’re already in financial trouble.

The Federal Trade Commission warns that many companies offering to repair credit problems might not be completely legitimate. No matter what they say, there simply is no way to completely repair bad credit overnight.

Of course there are some companies around that are legally able to help to design ways to improve your credit score.

So how do you know which is the right one?

Spot the Scam

If you’re dealing with a credit repair company that wants you to pay fees up front before they’ve done any work, then be very wary.

If you find any company that suggests you should apply for a new Employer Identification Number and simply ’start again’ with a clean slate then run fast in the opposite direction. This activity is not legal, so you could find yourself in serious trouble.

Another sure sign you’re dealing with a less-than-reputable company is that they don’t tell you any credit repair measures you can do on your own for no cost. If they insist the only way you’re ever going to get any help is to pay them huge fees, run!

It is illegal to attempt to remove accurate reports that list details about your past financial credit. If you have a bankruptcy or repossession listed, then these details will remain on your credit report no matter what these companies promise you.

If a scam credit repair company has already taken your money and given nothing in return but false promises, report them to your local consumer affairs office immediately.

The Real Deal

Some credit repair companies legitimately want to help you to get out of trouble. These companies will help you to fix any credit errors you might have listed. They’ll help to negotiate with your creditors and set up a realistic payment plan for you.

Any company that is completely up front and honest about what credit items can be repaired and which ones can’t and then tells you before you begin precisely what fees will be involved is most likely trying to do the right thing by helping you.

Make sure you ask for and receive a copy of the brochure “Consumer Credit File Rights Under State and Federal Law”. You should also receive a detailed description of the exact services the company will perform on your behalf.

If your credit is bad enough to warrant professional credit repair assistance, make sure you find a professional, accredited company and discuss all your options before signing any contracts or paying any fees to anyone.