Information on what credit repair agencies shouldn't ask their clients to do.

If you have a bad credit history, then you might want to consider getting the help of credit repair agencies to help you improve your credit score. Before you do business with such an organization, it's important for you to know what are the things that credit repair organizations shouldn't ask you to do. This is because some credit repair agencies are actually scams and can ask you to do illegal things that can only do you more harm in the long run.

* Credit repair agencies shouldn't lie or ask you to lie about your credit history.

Lying about your credit history to creditors or other companies and individuals can get you in trouble later on. You can even be charged with fraud if you get caught.

* Credit repair agencies shouldn't ask you to pay fees before any service has been rendered.

According to the Credit Repair Organization Act, credit repair agencies shouldn't require you to make advance payments. You should only pay after services have been rendered and your credit history has already been dealt with.

* Credit repair agencies shouldn't get away with not giving you a contract.

Before you do business with any credit repair agency, you should be provided with a contract. The contract must contain important information such as the payment amount you're required to pay, a description of the services that the credit repair agency will render, and an estimate of the time it will take for the services to be completed. The contract should also state that you have the right to cancel your dealings with the agency within three business days.

In case your credit repair agency asks you to do any of the things mentioned above, you can sue them for violating the Credit Repair Organization Act. You can also report violations to the Federal Trade Commission or to your state attorney general.

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