Credit repair services should not be confused with credit counseling services. Credit repair and credit counseling are completely different things. In fact, while credit counseling can lower your monthly payments, it can actually hurt your credit scores. Credit repair exists strictly to improve your credit scores. It's very important not to get the two confused.

Since credit repair is a fairly new topic and there are so many scams out there, many people are afraid to go to a credit repair service. You shouldn't be. The FTC is coming down hard on all credit repair organizations that are not following the law. As long as you do your homework and know your rights, using a credit repair company can be a great experience and can do amazing things for your financial future.

Credit repair services must follow specific guidelines from the Credit Repair Organizations Act, which are intended to protect consumers. You should receive an explanation of these rights before signing a written contract. Read them. In fact, get familiar with them BEFORE making calls and/or visiting the organization. Once you have it narrowed down, look up their record with the BBB (Better Business Bureau).

You should receive a contract with all of the following information:

• The payment terms for services, including their total cost

• A detailed description of the services to be performed

• How long it will take to achieve the results

• Any guarantees they offer

• The company's name and business address

Many people will tell you that you can repair your credit by yourself and that is absolutely true, but getting results can be difficult, time consuming, and frustrating. Choosing the right company can save you a lot of time and money. Finding one with years of experience and one that is professional is your best bet. Many of them also have full refund policies to give you piece of mind. I've seen a few reputable ones with 100% money back guarantees. Most of them also offer small monthly payment plans which you can cancel at anytime.