If your credit isn't up to snuff, you might be intrigued enough to consider trying one of those credit repair services you see advertised just about everywhere these days.

"You can fix your bad credit!" blares the announcer. "Erase bankruptcies, liens, judgments, and bad loans from your credit report forever!"

Or some such twaddle.

Yep, just like clockwork, whenever the economy takes a downturn and a lot of people start taking it on the chin, the rats crawl out of the woodwork looking to make a quick buck. And so it is with credit repair scams.

But wait, you say, "Their ads are all over newspapers, TV, radio, in the mail, and on the Internet, so they must be somewhat legit, right?"

Wrong.

The truth is, no one is able to erase the negative information on your credit report if it's accurate, except the creditor who put it there. It will stay there for seven years (10 years for bankruptcy) from the time it is reported. That's just the way it is.

There are steps you can (and must) take yourself to help fix bad credit.

But first you need to know the truth about many of these outrageous credit repair services. Their promises sound wonderful, but don't be fooled. Most credit repair services are out to pick your pockets, plain and simple, and that's just the half of it.

Credit "Fixes" That Could Land You in Hot Water

So, you ask, if no one can erase accurate information from my credit report, how do these bogus operators work?

Well, here's one of their favorite schemes and it's a doozy.

On your behalf, they'll dispute all the negative information on your credit report with the three major credit bureaus, whether it's true or not. If the creditors don't respond to the disputed items within a reasonable time (usually 30 days), the credit bureau is required by law to remove them from your credit history.

Great idea, huh? After all, there's a chance that 30 days will go by without a peep from swamped creditors and then Presto! Your credit is golden again.

Not so fast. When creditors finally respond to your disputed items–and they will, sooner or later–those negative marks go right back on your credit history. Only by then you'll have paid a thousand bucks or more to your friendly credit repair service. Good luck getting a refund.

At least in that situation you only suffer the sting and expense of being scammed. It could be worse. Get a load of this:

Next: Two Things You MUST Know About Credit Repair

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