Who would have ever guessed that just one little four letter word could have such a powerful impact on your future? FICO.

Perhaps one of the most powerful words in the world, your entire financial future is dictated by what your FICO score is, otherwise known as your credit score. You see the advertisements in newspapers, on TV and on the Internet.

You hear them on the radio. You get fliers in the mail, and maybe even calls offering credit repair services. They all make the same claims:
“Credit problems? No problem!”

“We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

“We can erase your bad credit — 100 percent guaranteed.”

The Federal Trade Commission (FTC) says do yourself a favor and save some money, too. Don’t believe these claims: they’re very likely signs of a scam.

Indeed, attorneys at the nation’s consumer protection agency say they’ve never seen a legitimate credit repair operation making those claims. The fact is there’s no quick fix for creditworthiness. You can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan.

The truth is, these companies can’t deliver an improved credit report for you using the tactics they promote. It’s illegal: No one can remove accurate negative information from your credit report. So after you pay them hundreds or thousands of dollars in fees, you’re left with the same credit report and someone else has your money.

If you follow illegal advice and commit fraud, you may find yourself in legal hot water, too: 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.

Avoid credit repair agencies. No one is authorized to correct credit items except the customer and creditor grantor. Get a copy of your credit report and review the reason codes.

The reason codes will tell you what you need to do to boost up your credit score whether it’s paying off collections, getting payments in on time, reducing how much you owe, or reducing the number of inquiries on your credit. Focus only on the top two reason codes on your credit report and you will be on your way to fixing your FICO score yourself.