I'm sure you've seen credit repair ads all over the place, billboards, radio, TV and the internet are all full of ads trying to get you to try their debt relief services. If you don't have the time or just don't want to expend the effort to fix your credit report then a credit repair service could be perfect for you.

How do you know that the company you're planning on working with is legitimate though? You can avoid credit repair scammers by simply knowing what bad signs to look out for when working with a credit repair company.

1. Look around to get an idea of what to expect from a credit repair agency. There are standards that the good credit repair companies hold to and are consistent from one to the next. Also, avoid the companies that send spam emails or cold call you. If you do choose to pursue credit repair through one of these companies make sure you don't get pressured into signing anything prematurely. Take the time to check out both the offer and the company completely before signing anything.

2. Avoid any company that wants you to pay them before they provide you with any service.

3. Look out for promises and guarantees. Without knowing your individual situation there is no way that any company can promise to increase your credit score. They may provide you with testimonials about how others have been helped by their service, but they can't predict what they can do for you without getting your information first.

4. You are never obligated to hire someone for credit repair. This is a choice that is totally up to you and if any credit repair company tries to tell you differently they are probably trying to scam you.

5. Never enter into a contract that you can't cancel. You may be required to pay for any services or work already performed, but there should always be a clause that allows you to terminate the contract at any time.

6. Never work with a company that offers to create a new identity for you. This is called file segregation and it is illegal. If the company gets caught they will be investigated and you will have broken the law and may face charges and penalties as well.

Those that have filed for bankruptcy can tell you that once you file you will likely receive letters from all sorts of companies promising credit repair through file segregation. They may claim that this is legal, but any time you apply for credit you will need to lie on the credit application form and this is considered fraud. You may face heavy fines and even jail time.

While there are scammers out there, most of the companies offering credit repair are actually legitimate. Take the time to investigate the background of the companies you're planning on working with and steer clear of anything that seems wrong to you in any way and you'll be fine in searching for credit repair.