Everyone has seen the advertisements on television or heard them on the radio: promises to fix your credit and thereby raise your credit score for a nominal monthly fee. But just how true are those advertisements and can those companies really do all they say they can?

According to the Federal Trade Commission, they can — but so can you. Credit repair comes down to a matter of time, patience and resources. Assuming that most people in need of serious credit repair are already somewhat strapped for cash – especially lthose who are looking for help with loan modification –  it comes as a surprise to learn that do-it-yourself credit repair comes at little to no cost to you. However, this culture of having things done now and by someone else enhances the appeal of a credit repair company. There is no right or wrong solution, but it is important that, as a consumer, you understand the pros and cons of credit repair so that you might make the most informed decision possible in choosing -- or not – to hire a credit repair company.

One of the disadvantages is that there are no guaranteed results, a point which will likely be stipulated in whatever contract you are asked to sign. Credit repair has varied results and in some instances, the company is able to garner outcomes in your favor; other times they are not so fortunate. However, no matter what the results, they will expect you to continue to pay your monthly retainer for the course of your contract. If you feel this might be a problem, then be sure to read over the specifics of your contract and don't sign it if there’s anything at all that makes you uncomfortable.

Another advantage of credit repair is that these companies do often have a number of resources at their fingertips and more personnel working regularly on your case. Adversely, you may only have limited time here and there, between all of your additional daily responsibilities, to communicate with those companies that are listed on your credit report.

However, you should know that it is hard to tell the good credit repair companies from those that take your money and offer no real assistance. And you certainly don’t need any more stress while you’re fighting foreclosure. The best way to combat this problem is to ask for references. A reputable company should be able to provide you with a range of references that can attest to the positive results the company has garnered..

It also important that you understand the methods in which they use to contact your creditors. If they use threatening or overly forceful language, your creditors not only will be less willing to work with you on removing the item in question from your credit report, but likely will flag the dispute with a frivolous label. Instead, be sure the company's tactics are persistent, but professional. Ask to be copied on any correspondence being sent to creditors, so you know actually the course of communication that your credit repair company has taken.