"Do you think I should use a credit repair service?" is a question that is often asked in forums and newsgroups that deal with credit and finance matters. "Are credit repair specialists the only people who can help me to repair my credit rating?" To answer these questions we first need to distinguish between genuine credit specialists and those that merely claim to be so, and then to consider whether you have to employ someone or whether you can deal with the problem yourself.

Anyone considering using a credit repair service should first read the advice of the Federal Trade Commission on this subject. Under the heading of "The Scam" it warns of companies that promise to clean up your credit report so that you will be able to take on new loans to buy a car or to move house. In many cases these companies charge you a large fee upfront and then fail to deliver. Warning signs to look out for are companies that want you to pay in advance before they provide the credit repair service and those that do not explain your legal rights. Other indications are suggestions that you should create a new "credit" identity, or even a new personal identity, both of which could amount to fraud.

Despite these dire warnings and talk of scams there are, of course, many genuine credit repair specialists who can help people to improve their credit score. There are limits as to what can legally be achieved. Provided you realise that accurate information on outstanding debts cannot be removed, it is possible to challenge inaccurate records. A specialist who is dealing with these problems on a regular basis will have the knowledge and experience to be able to investigate your credit report and advise you which of the negative entries can be removed. The application for removal of any incorrect entries can then be handled on your behalf.

On the other hand there is nothing to stop you dealing with the matter yourself. Everyone is entitled to receive a free copy of their credit report once a year, and it is recommended that you should do so. If you find any inaccurate or out of date information on the credit report, you should write to Experian, or whichever of the other companies that produced the report, and request the entry be removed or corrected.

So, should you use a credit repair service? Well that is up to you. There is no legal reason why you should not deal with the matter yourself. On the other hand some people may feel happier to pay a credit repair specialist to deal with it on their behalf.