Beware of the various credit repair scams that are operating. While they will promise to help you repair your credit the opposite is often the case.

Some on them will simply overcharge you for their services while the real scam artists can get you into anything from illegal activity to doing things that will get you into a worse financial situation than you are already in.

Beware if anyone helping you to repair your credit tells you to put false information on any loan applications including the use of a fake identity.

You can get charged with fraud for doing this and even though you might be acting on the recommendations of someone else you are held personally responsible for your own actions.

Never pay money upfront for any services because some of these scams have been known to take the money and run without offering any help whatsoever.

Don't pay for anything that you could do for free yourself and always read all their terms thoroughly to see whether there are any hidden fees in the small print that can cost you a lot of money after you start using their services.

Don't let any of these credit repair companies handle your money and particularly the ones where they offer to pay your creditors from the money of yours that they will hold in their own account.Often this money will never reach the creditors and you will be left with a bigger debt problem than when you started. This will do more damage to your credit rating and you will be better off if you did nothing at all.

Never work with a credit repair company that pressures you into to doing anything in any way. They should be helping you not creating more pressure than you already have and this is a sign that they cannot be trusted to work for your best interests.

If the credit repair service that is offered sounds too good to be true, then it probably is. Credit repair can take time no matter who is doing it so any promises of instant repair should be avoided.