THERE IS AN OLD SAYING that if it seems too good to be true, it probably is. This is never more true than in the world of credit repair. I hear from borrowers frequently that have been ensnared by companies that claim they can “clean up” a borrower’s credit profile, claiming, in some cases, that they can magically remove derogatory credit items such as legitimate foreclosure and bankruptcy records.

Typically these companies will charge huge fees up front, and more often than not will leave the consumer worse off than if they had done nothing at all. Sometimes they actually succeed in temporarily removing legitimate records — only to have the records return to a credit profile a short time later, after they have collected their fees.

However, there are legitimate companies that can assist consumers in the process of disputing misreported items found in their credit profile. These companies can also assist borrowers in improving their credit profiles by strategically paying off balances or adding new accounts.

The trick is making sure that you are working with a legitimate company. So again, the watch phrase is, if it sounds too good to be true, it probably is. If a company is making outrageous claims, beware — and be especially careful of companies requesting large up-front payments. In my experience the legitimate companies will charge on a pay-as-you-go basis, collecting payment only after services have been completed. The company that I have the most experience with even offers a money-back guarantee that items removed will not bounce back into a profile after removal.

As the threat of identity theft grows, more and more consumers are signing up for credit monitoring services. These companies monitor your credit profile and notify you whenever an inquiry is made or a new account is opened. Typically these services are offered in partnership with the major credit bureaus. Be careful that you know exactly what services you will be receiving and the duration of any contracts. Also make sure you know up front about any cancellation policies. Some of these companies require that you sign up for a year at a time, so if you want to cancel the contract you have to pay early termination fees.

The Federal Trade Commission has set up a website where consumers can view their credit profile for free and conveniently dispute any inaccurate items they may find there. There are lots of websites that offer “free” credit reports. But be careful, because there is usually a catch. And remember, there is only one site specifically set up by the government for consumers.

The government site is www.annualcreditreport.com. Consumers can access a free report from each of the three major credit bureaus (see contact information below) once per year. I advise my clients to pull an individual bureau report once every four months. This practice gives consumers a free look three times per year.

As always, the best advice is to get good advice. Contact a professional you know and trust, or get a referral from someone who has had a positive experience. Do your research; Google can be your friend. Nobody can please all the people all the time, so don’t automatically assume that a company is bad because of one complaint. However, if your search returns an avalanche of complaints, be extra careful.

Contact information for the three credit bureaus:

• Equifax Information Services: www.equifax.com; P.O. Box 74021, Atlanta, GA 30374; 800-685-1111.

• Experian: www.experian.com/reportaccess; 701 Experian Parkway, P.O. Box 2002, Allen, TX 75013; 888-397-3742.

• Transunion Consumer Relations: www.transunion.com/myoptions; 2 Baldwin Place, P.O. Box 1000, Chester, PA 19022; 800-888-4213.

Guy Benjamin (CAL BRE License #01014834, NMLS 887909) writes a weekly column for The Herald, offering general information on real estate matters. As it is impossible to address all possibilities and variations, he will try to answer individual questions by readers who contact him at 707-246-0949 or guyb@fairwaymc.com.height=”150″ />

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