DENVER -- There is an increase in solicitations from companies claiming to have the power to make all of your bad credit go away with just a wave of their magic wand and a substantial fee, but AARP Elder Watch warns, there is no magic wand and bad credit can not be erased.

According to a new alert release by AARP Elder Watch, "Due to the current state of the economy, seniors may, for the first time, find themselves in the position of having financial issues that have arisen unexpectedly and consequently have possibly negatively affected their credit scores."

The group points out that it is illegal to make such promises and that no one can remove accurate or legitimate negative information from your credit report.

According to the Federal Trade Commission, there are several ways to tell if the company behind the solicitation is out to steal from you.

First, the company wants you to pay for credit repair services up front, before they provide any services.

Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

The FTC said the company may also neglect to tell you your rights and what you can do for yourself for free.

The company may recommend that you do not contact any of the three major national credit reporting companies directly.

Another red flag listed by the FTC is a company that suggests that you try to invent a new credit identity and then, a new credit report, by applying for an Employer Identification Number to use instead of your Social Security number.

Finally, the company might advise you to dispute all the information in your credit report, regardless of its accuracy or timeliness.

The good news, according to AARP Elder Watch, "is that you can improve your credit report legitimately, but it takes time, a conscious effort, and sticking to a personal debt repayment plan. Colorado consumers have a right to order one free copy of their credit report each year. This opportunity can be used to check your credit report for errors, which you have the power to correct or dispute, should they be fraudulent."

To obtain a free copy of your credit report, call 1-877-322-8228 or: Annual Credit Report

For more information about AARP Elder Watch: AARP Elder Watch