The best credit repair services won't create false hope for a "miracle cure", but they definitely do help with the sometimes overwhelming task of improving your credit score. These companies aren't a panacea for financial mismanagement, however the best credit repair usually can help significantly to improve your credit score.

There are hundreds of companies offering credit repair services, but according to the Federal Trade Commission, most of them qualify as scams. Anyone claiming they can simply erase bad credit, or guarantee to raise your credit score, should be considered suspect.

According to the FTC, it is not possible to legally remove accurate and timely negative information from a credit report. Suggesting that you dispute all negative entries on your credit report, for instance, is illegal.

The best credit repair services won't ask you to pay in order to get your credit reports. Under federal law, anyone can get their credit report from each of the three credit-reporting agencies (TransUnion, Experian, and Equifax) once every twelve months for free.

Much of what these companies do are things you can do yourself, however they can often help inform those who may not be aware of all their options. Taking on some of these tasks can help lower fees, or you can chose to do the whole thing yourself.

It is important to differentiate between credit repair services and "debt consolidators". A debt consolidator does not try to fix your credit, but rather works to help you bring your outstanding debt under control.

This is done by contacting your creditors on your behalf, and negotiating a 'settlement' agreement, often a fraction of the actual outstanding debt. Then they combine these amounts. You in turn pay a single amount each month to the company, who then sends a portion to each creditor.

Even the best credit repair services can't help those who aren't willing to help themselves. They won't offer you the same sort of "bailout" that erases bad debt like a bankruptcy filing does. What they can accomplish, however is to help set you on the right path towards improving your credit score, which in turn will improve your financial future.