Everyday, companies target consumers who have poor credit histories with promises to clean up their credit report so they can get a car loan, a home mortgage, insurance, or even a job once they pay them a fee for the service. The fact of the matter is, these companies cannot deliver an improved credit report using the 'unique' tactics they promote. Its illegal: No one can remove accurate negative information from your credit report. So you end up paying hundreds or thousands of dollars in fees for the same service as competing companies, and you're left with the same credit report and someone else has your money.



If you see a credit repair offer, heres how to tell if the company behind it is up to no good:

* Before they provide any credit repair services, the company wants you to pay upfront. Credit repair companies cannot require you to pay until they have completed the services they have promised under the Credit Repair Organizations Act.

* Your rights and what you can do for yourself for free isn't disclosed to you.

* You are not recommended by the company to contact any of the three major national credit reporting companies directly.

* The company tells you they can get rid of most or all the negative credit information in your credit report, even if that information is accurate and current.

* You are suggested to create 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.

* You are advised to dispute all the information in your credit report, regardless of how accurate and current it is.

You may find yourself in legal hot water if you follow illegal advice and commit fraud: Know that it's a federal crime to lie 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. You could be charged and prosecuted for mail or wire fraud if you use the mail, telephone, or Internet to apply for credit and provide false information.