You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail.

Do yourself a favor and save your money. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.

The Scam

Everyday, companies nationwide promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can't deliver. After you pay them hundreds or thousands of dollars in up-front fees, these companies do nothing to improve your credit report; many simply vanish with your money.

The Warning Signs
   If you respond to a credit repair offer, beware of companies that:

• Want you to pay for credit repair services before any services are provided;
• Do not tell you your legal rights and what you can do-yourself-for free;
• Recommend that you not contact a credit bureau directly;
• Suggest that you try to invent a "new" credit report by applying for an Employer Identification Number to use instead of your Social Security Number; or
• Advise you to dispute all information in your credit report or take any action that seems illegal, such as creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

   You could be charged with a federal crime and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information.

The Truth

No one can legally remove accurate and timely negative information from a credit report. But the law does allow you to request a reinvestigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost, according to the Fair Credit Reporting Act.