Credit companies always appeal to consumers who have poor credit history and they often promise to erase bad credit, to clean credit reports and even create new legal identity. But can they really help in repairing bad credit history?

Here are some points to consider when deciding on seeking any help from credit repair companies:

- They collect payment for services in advance before they provide any solutions

- They do not inform you of what they can do for free; they even conceal the information regarding your legal rights.

- They advice you not to directly contact your credit report company.

- They recommend you to create a new credit report and new credit identity using the employer identification number rather than social security number.

- They suggest that you hide all information about your credit report.

Check on the above scams because engaging in something fraudulent can lead to your prosecution.

The truth is that no company can legally and accurately remove all bad records on your credit report.

According to FCRA or Fair Credit Reporting Act you can actually ask for a free credit report when a company acts adversely against you. For example, you are denied of your application for credit or insurance.

Basically, there are techniques on how to repair your credit:

1. Review and always get a copy of your credit report. Even though you have no bad credit record, you should review your credit report regularly. This will be useful to ensure that all contained information is correct, up to date and complete, and check on the information in your credit report that will affect your insurance or loan application and what amount will you pay for them. It will guard you against someone who utilizes your personal information such as identity thieves.

2. Analyze your credit report. This can let you see if there are inaccurate entries or negative listings. Most of the entries are not easily looked upon, such as medical collection. In addition, there are those reporting late payment although you have paid on time. Analyzing your report will let you ensure that no thieves are stealing your identity and using it for illegal transactions.