Companies target consumers with poor credit histories all the time, making promises to fix their credit report so they can get their dream car, a bigger home, health insurance, or even a job, but only after a fee is paid for their service. The fact of the matter is, these companies cannot deliver an improved credit report using the ’unique’ tactics they promote. So you end up paying hundreds or thousands of dollars in fees for the same service as competing companies, and you’re left with the same credit report and someone else has your money.

If you see a credit repair offer, heres how to tell if the company behind it is up to no good:

* You have to pay fees before they provide any of their promised services. Credit repair companies cannot require you to pay until they have completed the services they have promised under the Credit Repair Organizations Act.

* The company doesn’t tell you what you can do for yourself for free, let alone your rights.

* Contacting any of the three major national credit reporting companies directly is not recommended by the company.

* Despite how accurate and current your credit information is, the company tell you they can get rid of most or all the negative credit information.

* You are suggested to create a \"new\" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.

* You are advised to dispute all the information in your credit report, regardless of how accurate and current it is.

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: Know that it’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.