Getting help from a Credit Repair Agency may be a useful solution for those with seriously damaged credit. Beware, however, that many Credit Repair Services may not measure up to your expectations. Do your homework before signing up.

While there are many credit repair agencies that offer legitimate services, some credit help businesses may charge extremely high fees, may fail to follow through on promised services, misrepresent the terms of their service, and neglect to disclose specific costs or explain the complete terms of the agreement. Save yourself unnecessary trouble and expense - use the following questions to help review each company, the services they offer, and the terms of the agreement you may be entering in to. Be sure to compare several companies before choosing to do business with any organization.

Questions to Ask:

What services does the company offer? Is it worthwhile to you to pay someone else to do something that you can do yourself for free? Credit repair companies cannot legally do anything to improve your credit that you cannot do for yourself.

Does the company promise to remove negative credit information from your report? Nobody can legally remove accurate and timely credit information from your credit history, whether it is negative information or not. Only incorrect or outdated information can be corrected, changed, or amended.

Does the company freely and entirely disclose their fee-schedule and cost of service, including any monthly fees, per-service fees, and other costs? Is there an advance-fee required before they will take your case?

Does the company promise you an unrealistically quick solution to your credit problem? In reality, only time and a consistent effort to repay your debts can improve your credit report significantly.

Does the company disclose your legal rights clearly, including information about what you can do for yourself for free?

Does the company discourage or prevent you from contacting a credit bureau on your own?

Does the company recommend that you try to create a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security number? This is illegal. It is a federal crime to receive an Employer Identification Number from the IRS under false pretenses.

Does the company encourage you to do anything that seems questionable or illegal, like disputing all information in your credit report or creating a new credit identity? If you commit fraud by following illegal advice, you may be subject to prosecution.

Does the service contract detail specific information about: the total cost of payment for services; detailed descriptions of all services that will be provided; how much time it will take to achieve results; any guarantees they offer; and the company's name and business address? The Credit Repair Organizations Act requires that this detailed information be included in your contract. Review the contract carefully to be sure that you understand all terms of your agreement, and that the contract clearly explains all required information.

Visit the Federal Trade Commision's site at www.ftc.gov for additional information regarding financial services.