Accurate and timely information cannot be removed from your credit report, even if you have paid off a once delinquent debt. The fact that it is paid off is to your credit; however, the fact that the account was once delinquent is also true and can remain on your credit files from up to seven years.

Bankruptcy information can be reported for up to ten years. Information reported because of an application for a job with a salary of more the $20,000 has not time limit. Information reported because of an application for more than $50,000 worth of credit line or life insurance has no time limitation. Default information concerning a US Government insured or guaranteed loan can be reported for seven years after certain grantor actions.

Information concerning a law suit or a judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. No one can legally remove accurate and timely negative information from a credit report. The law does, however, allow consumer's to request an investigation or reinvestigation of the facts and information in your credit file that you dispute as inaccurate or incomplete. There is no charge for this information.

Credit repair clinics or services can't do anything to improve your credit report that you can't do for yourself, at little or no cost. Avoid companies that want you to pay for credit repair services before they provide any services. It is illegal for telemarketers who offer credit repair services to request payment until six months after they have delivered the service.

The Scam

Everyday companies nationwide appeal to consumers with poor credit histories. They promise, for a fee - usually paid up-front - to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, says the FTC, that they can't deliver on their promises and claims.

According to hundreds of reports, consumers pay hundreds or thousands of dollars in up-front fees and these companies do nothing to improve your credit report, many credit repair companies simply vanish with the consumer's money. These companies do not tell you your legal rights and what you can do yourself for free. They often recommend that you do not contact a credit bureau directly.

Or they advise you to dispute all information on your credit report or to create a new credit identity which is illegal. If you follow any illegal advice or commit fraud, you also may be subject to prosecution.