Credit Repair can be a legitimate and credible service. I've personally used it myself with great success. There are many good companies that do an excellent job and are highly reputable. On the flip side there are equally as many companies ready and willing to scam you.
Luckily, I can inform you how to spot a Credit Repair Rip off right now and hopefully save you from financial anguish in the future...
Watch for Credit Services that claim they are able to clean up your credit report instantly. It takes more time for a 3rd party to fix a bad credit report for you. Possibly 6 months to 1 year.
Never let a repair company fabricate a new credit identity for you. It's illegal to set up a new credit identity and you can be highly penalized for this.
A Credit Repair Scam may ask for large upfront payments. This may be tricky and you should use good judgment. Some legitimate individuals may charge high fees because they are extremely good at what they do. I know a woman that is so skilled at repairing credit that she charges thousands of dollars. Her excellence merits the price tag. Ask for prior experience and most definitely referrals. If they cannot prove to you that they are credible and worth every penny, keep looking.
If they try to manipulate you into using their service or use high pressure tactics to sign you up, it is wise to go elsewhere.
If they know loopholes in credit laws to repair your file, it may not be on the up and up. I would avoid these companies as well.
If they state that they are connected to the government or a government agency, this should trigger a red flag.
Any guarantee of specific improvement to your credit file or credit scores is a sure sign of fraud. Results will vary for every client dependent upon the severity of damage. Also, there are a million things that you can do along the road to recovery to hurt your credit further and bring your FICO scores back down. The only guarantee you should expect from a credit repair service is the ability to cancel at any time.
Just remember, as with any case where your money and financial standing is involved, if it sounds too good to be true, it most likely is.
There are highly acclaimed and totally professional credit repair services available with very reasonable fees. You may only need to know where to look for them and avoid the scammers once and for all.