Credit repair companies can help you fix your credit, get out of debt, and reestablish your credit scores.  The question is, “Which credit repair company should I work with?”  With the economy suffering and unemployment at or near 50 year highs, credit repair companies are busier than ever.  This also means finding the best credit repair company is challenging.

Like with most important financial decisions, choosing the right credit repair company can be the difference between filing for bankruptcy and being ready buy a new home in two years.  It is important to following these guidelines when choosing which credit repair agency to work with:

• If it sounds too good to be true, it IS too good to be true! – When searching for credit relief, many of us are in a difficult situation already.  It is easy to make rash decisions that aren’t well thought out or planned.  Take a deep breath and read what the company is marketing to you.  Any company that guarantees they will remove all of your bad credit in a short period of time is not being up front with you.  Credit repair takes time, typically 1-2 years at best, and if they guarantee 100% repair in 6 month it’s just not the case.
• Make sure the company you decide to work with has a solid understanding of the “Fair Credit Reporting Act.”  This document is about 85 pages and details your rights as a consumer with regards to how companies report to credit bureaus about your payment history.  If the company you are working with doesn’t understand this document, move on.
• If the company asks for full payment up front then be VERY CAREFUL.  These companies, many of which are non-profit, still need to make money, and that is understandable.  The problem is when they ask for full or complete payment prior to performing any services for you.  Partial payments are to be expected, but typically only after a free consultation.
• Credit repair can be embarrassing so asking friends or family for referrals is sometimes not an option.  However, if you happen to know someone who has used a credit repair company ask them for feedback.  A referral is often the best way to find a good company.  With credit repair the same holds true.

Remember, there are no legitimate overnight credit fixes.  If you want to fix your credit properly then you need to do it right.  That means finding a good credit repair company, follow their advice, and understand that fixing your credit will take time.

Credit repair companies are easily found by searching Local Credit Counseling or by searching the web.