Yes, Credit Repair offers are mostly scams even though you see them everywhere, in the newspaper, on the radio and TV, and on the Internet. They all have the same pitch, guaranteed removal of bad consumer credit scores. Don't believe it. Only time (up to ten years or longer) will remove true bad credit ratings caused by bankruptcy, missed payments, or defaults on debts.

If it is a scam credit repair company, they will likely ask you to do the following. First they will want the fee up front. They will tell you not to contact the consumer reporting agency yourself. After all, they want to charge you for what you can do for free. And then, probably something illegal like disputing all the information in your credit report or worse, creating a new consumer identity by using an Employer Identification Number instead of your Social Security number. These last two are what is called fraud. Why add to your problems by inviting the feds into your life for consumer credit fraud. False information on a loan or credit application, lying about your Social Security number, or obtaining an Employer Identification Number from the Internal Revenue Service under false pretenses is a crime.

There are legitimate credit repair companies out there. But again, why pay for what you can do yourself. Giving the information you have on bad data in the consumer credit report won't take you any longer to tell the reporting agency than it will to tell the credit repair company. However, if you want to use a reputable credit repair company, they must have you sign a written contract. If the credit repair company contacted you in your home (Internet, phone, mail, or in person) you have three days to reconsider. Use them to review your contract again. What is the total cost? What will they do and how long will it take? Do not pay in advance. Legally, credit repair companies can not charge you until the services they promised are completed.