Don't fall for the advertisements from companies claiming they can repair your credit, increasing your credit score dozens or hundreds of points. Many these companies are currently being sued by the government for false advertising and fraud. They will promise to do wonders for your credit report, but consumers are finding out that the companies do not fulfill their wild promises.

Consumers have the right to challenge inaccuracies on their credit report for free in the United States. All of the big three credit reporting agencies allow disputing of items on your credit report online or by mail.

One tactic some of the "credit repair" companies use is to challenge every derogatory item on your credit report hoping that eventually it will be removed. It is not legal to challenge accurate items on your credit report, so whether you pay a company to do this, or attempt it yourself, you are risking violating federal laws.

After all, everything that should be on your credit report is your responsibility and there is no magic fix to get it off your report. Only time will take care of derogatory items. Most negative items on a credit report drop off after 7 years. Some last 10 years or more, depending on the type of negative item.

The best thing you can do is not give your money to "credit repair" companies, pay your bills on time, and stop increasing your amount of credit card debt. These simple actions often show an improvement in your credit score in as little as a year or two.