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A credit repair company is by definition an organization that provides you assistance to improve your credit through various means such as checking the accuracy of your credit report with the credit bureaus, taking care of credit report disputes, handling credit repair in the wake of bad debts and the like. To state it differently, this is a company that helps you to manage your finances better.

Here’s what a credit repair agency can do for you.

A lot of people advocate the “do it yourself” credit ranking restoration method rather than seek help from a trustworthy credit repair company. Is this the best option? It’s your choice. This is what a credit repair agency should offer you:

- checking the accuracy of the remarks entered in your credit report as per each major credit Bureau (there are three of them – Experian, TransUnion and Equifax)
- starting a trade line dispute; and following up until those mistakes have been corrected
- advising you (the indebted person) in regard to the best methods to adopt so you can raise your credit score within the shortest possible time
- counseling you on proper management of finances so you will avoid falling into debt traps
- facilitating avenues that will enable you to earn your living again
- monitor the credit report from each of the three bureaus to catch any mistake that could erode your credit score
- teaching you how to maintain a good credit-to-income ratio that will reflect well on your credit score

What can a credit repair firm not do?

A lot of people perceive a credit repair company like they would a genie in a magic lamp. But credit repair professionals cannot do everything. Here are some things that a credit repair agency can not do:

- settle any credit report dispute overnight – it will take at least 60 days
- repair credit reports overnight – it requires at least 6 months
- wipe off bad debts – it requires at least 6 months
- change facts entered in your credit report – it will remove only those which are genuinely not accurate
- wipe off the history of bankruptcy – it can only help you improve your credit score as a bankruptcy record will stay on your record for a minimum 7 years
- improve your credit score in an instant – this is a gradual process that requires at least 3-6 months

3 warning signs that point to a fly-by-night credit repair company

While there are many reputable companies, there are nevertheless lots of scam out there who thrive on the gullibility and helplessness of those who suffer with bad credit to make a fast buck. Here are three red flags that should tell you that the credit repair company is fraudulent:

- it requires full payment upfront
- unrealistic promises of fast results
- it introduces you to illegal ways of fixing your credit scores

Avoid any such credit repair company like the plague! Remember, a bad debt or even bankruptcy is not forever. But breaking the law to restore bad credit can backfire on you pretty badly. Never be tempted into accepting such “help” because these organizations are fraudulent and will lead you down the pathway to trouble.