You may have already seen the advertisements in newspapers, on TV, or on the Internet. You can hear them on the radio. Maybe you have received their fliers in the mail. Some of you may even get telephone calls from telemarketers offering their credit repair services. They all seem to make the same misleading claims:

• "Credit problems? No problem!"
• "We can erase your bad credit - 100% guaranteed."
• "Create a new credit identity - legally."
• "We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!"

They are "lies", Don't for one moment believe these misleading statements. There really is only one way to clean up your credit report and that takes time, a conscious effort on your part and a personal debt repayment plan that will improve your credit score.

There are companies nationwide that appeal to consumers suffering with poor or bad credit histories. They often promise, for a fee of course, to clean up your credit report allowing you to get that car loan, a mortgage, Death Benefit, or a job. The real truth is, most of them can't deliver what they promise. Once you have paid them hundreds or even thousands of dollars in fees these companies normally do nothing to improve your credit score. Some will simply vanish with your money.

Should you decide that you would rather use the services of a credit repair company make sure you look out for these tell-tale signs of a scam:

• companies that do not tell you your legal rights and what you can do for yourself for free.
• companies that recommend that you not contact a credit reporting company directly.
• companies that suggest that you try to invent a "new" credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number.
• companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

Please keep in mind you could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It is a federal crime to lie or give misleading information on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.

It is not possible to legally remove any accurate and timely negative information from your credit report. The law does allow you to ask for an investigation of information listed on your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair service can do for you legally, you can do for yourself at little or no cost.

• You're entitled to a free report if a company takes adverse action against you, like denying your application for credit, Death Benefit, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft.
• Each of the nationwide consumer reporting companies - Equifax, Experian, and TransUnion - is required to provide you with a free copy of your credit report, at your request, once every 12 months.

The three companies have set up a central website, a toll-free telephone number, and a mailing address through which you can order your free annual report. To order, click on annualcreditreport.com, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You can print the form from ftc.gov/credit. Do not contact the three nationwide consumer reporting companies individually. They are providing free annual credit reports only through annualcreditreport.com, 1-877-322-8228, and Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. You may order your reports from each of the three nationwide consumer reporting companies at the same time, or you can order your report from each of the companies one at a time. For more information, see Your Access to Free Credit Reports at ftc.gov/credit.

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