Some people have trouble with credit. Financial disaster is just sometimes a part of life and you can't just dwell on the bad times and the things that drag your credit score down. If you feel that your poor credit history is too much for you to handle on your own then you may have thought about the credit repair company down the road.

These companies advertise quick credit help, usually in the form of 48 hours or less! The thought is they can get you through your financial difficulties and you will be starting over from scratch in a mere two days! The only problem is most of these companies can't do this.

When you filled out a credit card application you probably were thinking you'd get a great rewards program credit card or lower interest credit card that you would hold onto for life and that you could always use. But hey, things happen and your credit goes AWOL.

Credit repair companies thrive on other people's misfortune and they see no wrong in pretending to help you, collecting their dues and heading off the scene. Let's take a behind the scenes look at these ‘credit- helpers.'

What is a credit repair company supposed to be? Technically these companies are unlike credit card companies and are defined as "A non-profit organization that helps people overcome financial difficulties and gain control of their finances through teaching them how to manage their money."

If you can find a company that will do this then you have found a good thing but more often then not you will be fighting a battle you probably won't win and your bad credit will only get worse.

A good credit repair company will be willing to show you how to make a budget, tell you different money management tips and even give you free workshops on moving from poor credit to excellent credit. If they seem happy to give you any information you ask on themselves and their company, they are probably a legit helper. However it is those who have their hands out constantly that you should be aware of!

If you think that your financial difficulties have become too large a load to handle then you may look at what is known as a Debt Management Plan (DMP). These plans are where you, your creditors and your credit counselors get together and figure out a sensible way for you to pay back your debts.

You'd usually only go these routes if you are in serious debt or if you are over your head in several different credit cards. The meeting may result in your creditor lowering your interest rate in order to make it easier for you to pay your debts back. Credit card companies just want to make sure they get their money somehow, someway.

While DMP's can be a very helpful thing, they are usually a long and tedious plan. Obviously you will eventually find yourself debt free and no longer getting hassled by a credit card company but it will probably take years to get to this point.

One thing to keep in mind is that if you have participated in a DMP you will have a very difficult time getting a new credit card application to go through. Many creditors will see that you have gone (by glancing at your credit history) and they will be scared off from lending to you. You may end up getting stuck with a credit card application for bad credit or a secured credit card for a little while in order to build yourself back up.

As with everything, the good comes with the bad and credit repair companies are not always the non-profit credit helpers they promise. If you see a company that states they can reduce your debts incredibly quickly and get rid of all negative information from your credit report, you should have a lot of concerns! This is how these bad companies operate:

• They will tell you to stop all payments to your creditors and they will then contact them and let them know you are going to dispute many of the charges.
• Your debts will be known as ‘uncollectible' and all the negative information on your credit report will be erased. Your credit card company will likely ask for less then you owe in hopes to get some money.
• Then, the IRS will investigate your claims and find that the disputes had no merit and the negative information will go back on and you will owe any other fees as well. Your credit score will probably be lower then when you started!
• When you try and contact the credit repair company you will probably have a tough time because they are not going to want to discuss the matter with you- and they have most likely already been paid!

The lesson here is that you should always be careful who you employ to help your credit. There are plenty of scam artists out there who want nothing more then to rip you off. However, there are some, yet few, legit non-profit organizations in the United States that want to help you overcome financial woes. If you just do your homework you'll be just fine!