Credit repair companies say they can delete negative information from credit reports. Marketing them self’s as Credit advisor's, Credit Rating Correction Services or Credit Consultants, they broadcast variations on these ads:  Turned down due to bad credit? We can help out!  Countless of these companies charge hundreds if not thousands of dollars for the promise to cleanse up bad credit reports. Nevertheless the truth is, this business can only do what you could do yourself at no charge.

No one can remove negative information that is correct from your credit report. No company has a hush-hush ability to get rid of all negative information.

However this doesn't stop their claims. This misleading quote is from a credit repair company brochure: Charged-off accounts, collection accounts, judgments, tax liens, repossessions, and even bankruptcies can be deleted from your credit report in less than one year (five to seven month average).

A particular approach is to flood credit reporting agencies with requests to verify information. If a credit reporting bureau cannot confirm an entry within 60 days, it will do away with the information from the report. However if the information is later demonstrated to be accurate, it will go back in the report.

Before you even think putting your signature on a contract with a company that promises to repair your credit, keep in mind these facts:

You can obtain a free copy of your credit report on your own.

You have the right to dispute accounts in your credit report.

Watch out guaranteed credit offers!

Credit repair and other business frequently say they guarantee to get you a credit card, in spite of your credit record. In reality, these companies do not always keep their guarantee. From time to time, they'll just take your money and run; you will not get any credit, regardless of what they agree.

If they get you a credit card at all it often will be a secured bank credit card, with high up-front application fees, that stipulates you to deposit and keep some hundred dollars in a savings account, or a credit card that only allows you to purchase things in a cataloged from a business that you in all probability never heard of.

Credit repair companies frequently promote on television, in newspapers and even on matchbooks. From time to time they require consumers to dial a 900 telephone number to get additional information. Calls to 900 numbers can charge $2 or $3 a minute, so listening to a small amount of minutes of information about the cards can be costly.

Several companies try to get people a credit card by having them apply using a tax id number instead of an social security number. It is a criminal act to apply for credit under someone else's social number or a tax id number; do not do business with one of these companies.

Law enforcement organizations have shut down many credits repair companies however it is tough to stop a fraudulent credit repair companies; unless for people protest about it. Therefore, be careful about responding to credit repair ads and be sure to complain to the agencies listed below if you think a credit repair company took advantage of you.

For more information

The Federal Trade Commission (FTC) revealed information for consumers on the subject of credit and put into action federal laws on credit. For a list of free publications, click on the FTC's Public Reference Department at the address given below. Despite the fact that the FTC does not handle individual cases, it can act when it notices a pattern of possible law violations increase. Complaints about credit reporting agencies and credit repair scams must be in writing. Send them to: FTC Credit Practices Division, 6th St., N.W., Washington, DC 20580.

Get in touch with your local consumer protection agency or your state Attorney General's office. Many Attorneys General have toll-free consumer hot lines. These numbers may be listed in the self-help or government partitions in the front of your phone book. These agencies can recommend you advice and may also be able to help resolve your complaint.

Consumer Action's free complaint/information switchboards offering non-legal consumer advice and referrals can be reached from 10 a.m. to 2 p.m. on weekdays. Chinese, English and Spanish are spoken. Call either (415) 777-9635 (San Francisco office) or (213) 624-8327 (Los Angeles office). Consumer Action has a free list of secured credit card banks that do not charge application fees. To receive a free copy, send a self-addressed stamped envelope to: Consumer Action Secured Credit Card Survey, 717 Market St., Suite 310, San Francisco, CA 94103.

The Consumer Credit Counseling Service (CCCS) helps consumers who have troubles in paying their bills prior to their good credit ratings suffer. Your local CCCS office can help you work out an accommodating payment plans to make debt repayment more practical. Call (800) 388-CCCS for an interactive recording that will offer you with the phone number of the office nearest to you. Spanish-speakers can call (800) 68-AYUDA (800-682-9832) between 8 a.m. and 7 p.m. central time.

Previous to you signing an agreement with any establishment, make sure it listed with the local Better Business Bureau (BBB), a non-government assistance which gives advice to consumers on fraud prevention. Call your local BBB. If you cannot find a local number listed in the phone directory, call the Council of Better Business Bureaus at (703) 276-0100 for a recommendation to the office nearest you.