There are millions of people who have been affected by the recession. As consumers work to get their finances back on track, the prospect of dealing with credit repair can seem a bit overwhelming. There are companies out there that know how frustrating the process can be and offer services to consumers who want help repairing their credit. Unfortunately there is no “easy fix” for damaged credit and companies that promise otherwise are selling lies. Here are a few tips to avoid being the victim of a credit repair scam.

• Do not pay for services upfront. It is against the law for credit repair companies to charge a fee before services are rendered.

• Understand your rights- Each person has the right and ability to repair their credit on their own. If you are considering a credit repair company and they have not disclosed this information, they are more than likely up to no good.

• Avoid the “new identity” pitch- Some credit repair companies will encourage clients to create a new credit report or identity by applying for an Employer Identification Number (EIN) that will be used instead of your social security number. Do not fall for this pitch and avoid working with a company that offers this advice.

• Stay involved- Review your credit report and contact the credit reporting company if you have any questions regarding the information contained on your report. Fraudulent credit repair companies often recommend you avoid contact with credit reporting agencies which leaves you in the dark in regards to the activity on your credit report.

• Do not dispute accurate information- Inaccurate information reported on your credit report can and should be disputed in order to have it removed. Avoid companies that suggest you dispute all negative information regardless of the accuracy.

Many consumers find the process of repairing their credit long, confusing and disheartening. In truth, it can be a long process but one that each person can and should do on their own. Their are legitimate credit repair companies out there, however they do not do anything that you can not do yourself. This is one situation where you can eliminate the chances of being scammed by an illegitimate company by simply learning how to repair your credit on your own and committing to the process. It may take time, however you will have the satisfaction of knowing the right steps are being taken and the end result will be a credit report and score that reflect your true credit worthiness.