Problem is, none of these companies can boost your credit scores. And they certainly can’t do it overnight. The for-profit credit-repair industry is a scam.

Here’s the truth: The only person who can improve your credit score is you. You are the only one who can take the steps necessary to turn a low score into one that will guarantee you the lowest interest rates and best loan products.

Today’s mortgage, auto and personal loan originators rely on your three-digit credit score, also known as your FICO score, to determine if you have been a responsible borrower in the past. If you have been, they’re more likely to lend your money at reasonable interest rates. In general, borrowers with a credit score of 720 or higher will qualify for the best interest rates. Those with scores below 620 will almost always be relegated to the world of sub-prime loans, where they’ll be stuck with higher interest rates and fees.

Because credit scores have become so important, an entire cottage industry of credit-repair firms has hit the scene. These companies, who haunt late-night TV and radio, promise that they can instantly boost your credit score. They promise to lead you away from the sub-prime loans into the rarified world of “A”-paper lending.

Too bad it’s all false. There are three ways in which you can increase your credit score. First, you can order your free credit reports from AnnualCreditReport.com and study them carefully for any mistakes. If you find a missed car payment that you know you made on time, you can notify the national credit bureaus in writing. Once the bureaus remove that mark against you, your score will improve.

Secondly, you can start paying all your bills on time all the time. This will gradually increase your credit score. So will paying down your monthly revolving – usually credit card – debt.

Unfortunately, none of these steps will hike your scores immediately. Credit repair is a long process that requires patience. You may have to wait a year or more for your score to rise high enough to make borrowing money for a house or car a financially sound move.

These steps are all also ones that you can take on your own, without the help of any outside credit repair company. Never pay an outside company to do what can do on your own for free.

Individuals, especially those just turning 18, can’t afford to purchase new things but they assume that with a credit card they can afford it. This isn’t the case. They end up getting a credit card, maxing it out immediately, and then not being able to make the minimum payments each month. This immediately starts destroying your credit.

There are ways to establish your credit without applying for a credit card. Let’s take a look at a few of these ways below.

One of the first things you need to do is to order a credit report – you can do this free once a year. The reason you need to do this is to ensure that you don’t have anything on your credit that shouldn’t be there.

Once you’ve checked out your credit report, checking and savings account are probably the first priority for young adults seeking to establish credit from scratch without a credit card. Bank accounts are a sign of stability for lenders so open one up and keep it in good standing.

Another great way to establish a credit history is to have someone co-sign a loan for you. However, first things first, make certain you can make the payment. If you can’t make the payment, make sure there will be someone else that can help you out and make the payment on time for you until you can pay them back. This will show up on their credit report as well as yours and is probably one of the simplest methods of establishing credit quickly.

There are pre-paid debit/credit cards that you can purchase. You may also know them as secured credit cards. You are practically lending the funds to yourself. You can simply add funds to the card and you don’t ever have to worry about going over and spending too much because you’ll only be permitted to spend the amount that you funded to the card to begin with, which is known as your spending limit. This is an easy way to establish credit (make sure they report to the credit bureaus though as some may not) and keep your head above water.

If you are on your own, in your own apartment or house, make sure you make your rental payment on time as well as your utility bills. More often than not, these places will report the information to the credit bureaus.

One final tip to help you establish your credit score rather than hurt it, do not keep applying for credit cards and other credit accounts as each time you apply, your credit score dwindles just a little bit. If you are trying to establish a good credit score without the use of a credit card, then you definitely don’t want to hurt it in any way during the process.

Above all, just remember to be patient – it takes time to establish credit.