A Consumer Guide to Fixing Your Credit

Fixing a credit report can be a difficult and painful process, but it doesn't have to be.  An entire fee-based industry has been developed to help consumers repair their credit reports.  In truth, if information can be corrected, then a consumer has a right to get it corrected on their own--without paying anyone for the privilege.  Our firm does not offer any credit repair services, but we do want to help educate consumers about how they can take control of their credit, correct mistakes within their credit reports, and enforce their federal rights when appropriate corrections have not been made.

Fixing a mistake on one credit report does not means the mistake is gone forever.  It may later reappear on a credit report or get reported to another credit bureau.  In truth, all of the credit reporting agencies (TransUnion, Experian, CSC, and Equifax) genuinely want to ensure the maximum possible accuracy of your credit report because they are required by law to do so.  If they do not, you have a right to sue them under the Fair Credit Reporting Act ("FCRA"). 

Many of these credit reporting agencies' websites offer useful advice, tips, guidance and services for helping you get your credit reports right.  But they also offer lots of expensive monthly services to make it easy for them to do what they are required by law already to do: namely, ensure the maximum possible accuracy of your personal credit information.  Skip the expensive add-on services and stick with the basics outlined below.

The First Rule of Credit Repair: Put Everything in Writing!  The power of the pen is mighty and what follows is our firm's best advice for getting to the root of any credit report error and getting it fixed, once and for all.  At the end of this process, you'll be a better informed consumer and your credit report will hopefully fixed to your satisfaction.  If on the other hand your credit reports are still showing errors after you have followed these steps, or an unauthorized person has accessed one of your credit reports, then you will want to contact our law firm to find out what your rights are.

The Second Rule of Credit Repair: You Can't Change Or Remove Accurate Information--Even IF You Wish You Could!  Like it or not, creditors have a right to tell the truth about you and your payment habits.  Potential credit grantors have a right to expect that the information they get off of a credit report is accurate, too.  Consumers have the right to expect that the information on their reports is accurate--even if it's negative.

Was I denied credit because of a "bad credit report"?

If you applied for and were denied credit, the Equal Credit Opportunity Act requires the creditor who denied you credit to tell you the specific reasons for your denial. For example, the creditor must tell you whether the denial was because you have "no credit file" with a Consumer Reporting Agency or because the Consumer Reporting Agency says you have "delinquent obligations." This law also requires that creditors consider, upon your request, additional information you might supply about your credit history.

How do I locate the Consumer Reporting Agency that has my file?

If your application was denied because of information supplied by a Consumer Reporting Agency, the company that denied your application must provide you with the name, address and telephone numbers of the Consumer Reporting Agency. Otherwise, you can find the Consumer Reporting Agency that has your file by calling those listed in the Yellow Pages under "credit" or "credit rating and reporting." Since more than one Consumer Reporting Agency may have a file about you, call each one listed until you locate all agencies maintaining your file.

Do I have the right to know what the report says?

Yes, if you request it. The Consumer Reporting Agency is required to give you all the information in your report and, in most cases, the sources of that information. However, the Consumer Reporting Agency is not required to reveal any credit rating or risk evaluation. You also have the right to be told upon request the name of anyone who received a report on you in the past 12 months, and you may also request the address and phone number of each such person. (If your inquiry concerns a job application, you can get the names of those who received a report during the past two years.) The Consumer Reporting Agency will also provide you with a written summary of your rights under the Fair Credit Reporting Act.

Is this information free?

Yes, in certain circumstances. If your application was denied because of information furnished by the Consumer Reporting Agency, and if you request a copy of your report within 60 days of receiving the denial notice you are entitled to the information without charge. You are also entitled to one free report once in any 12 month period, if you certify in writing that you:

• Are unemployed and intend to apply for a job in the next 60 days;
• Are receiving public welfare assistance; or
• Believe that your report is wrong due to fraud.

If you don't meet one of these requirements, the Consumer Reporting Agency may charge a reasonable fee, $3.00 in Minnesota* and usually about $9.00 in most other states.  The reduced Minnesota fee only applies to requests made in writing and does not apply to internet or phone requests for a report.

What can I do if the information is inaccurate or incomplete?

Notify the Consumer Reporting Agency. The agency probably has a toll-free telephone number. Be as specific as possible. The agency is required to delete or reinvestigate the items in question. If the new investigation reveals an error, a corrected consumer report will be sent to you, and upon your request, to anyone who received your report in the past six months (Job applicants can have corrected reports sent to anyone who received a copy during the past two years.). If you dispute the accuracy of the information in your file and the Consumer Reporting Agency deletes it, the agency can not put the disputed information back into your file without notifying you in writing.

If you contact a consumer reporting agency to dispute the accuracy or completeness of information in your file, the reporting agency may forward your dispute to the creditor or other person who furnished the information to the agency. But you also should still contact that source of information directly. Many creditors have a special address for this purpose, and have a duty to avoid reporting inaccurate information. Also, if you tell anyone that you dispute the accuracy of information, then that person must note that the information is disputed whenever it is provided to a consumer reporting agency.

What can I do if the Consumer Reporting Agency won't modify the report?

The new investigation may not resolve your dispute with the Consumer Reporting Agency. If this happens, have the Consumer Reporting Agency include your version of the disputed information in your file and in future reports. You may submit a written statement of any length to be included in your file, although if the Consumer Reporting Agency helps consumers write a clear summary of the dispute, the statement may be limited to 100 words. At your request, the Consumer Reporting Agency will also show your version or a summary of your version to anyone who recently received a copy of the old report. There is no charge for this service if it's requested within 30 days after you receive notice of your application denial. After that, there may be a reasonable charge.

Do I have to go in person to get the information?

No, you may also request information over the phone. But before the Consumer Reporting Agency will provide any information, you may have to establish your identity by completing forms they will send you. If you do wish to visit in person, you'll need to make an appointment.

Are reports prepared on insurance and job applicants different?

If a report is prepared on you in response to an insurance or job application, it may be an Investigative Consumer Report. These are much more detailed than regular consumer reports. They often involve interviews with acquaintances about your lifestyle, character, and reputation. Unlike regular consumer reports, you'll be notified in writing when a company orders an investigative report about you. This notice will also explain your right to ask for additional information about the report from the company you applied to, or you may prefer to obtain a complete disclosure by contacting the Consumer Reporting Agency. Note that the Consumer Reporting Agency does not have to reveal the sources of the investigative information.

If an employer intends to take any adverse action against you based on a consumer report, whether or not it is an investigative consumer report, the employer must first give you a copy of your report and a summary of your rights under the Federal Fair Credit Reporting Act.

How long can Consumer Reporting Agencies report unfavorable information?

Generally seven years. Adverse information can't be reported after that, with certain exceptions:

• Bankruptcy information can be reported for 10 years;
• Information reported because of an application for a job with a salary of more than $75,000 has no time limitations;
• Information reported because of an application for more than $150,000 worth of credit or life insurance has no time limitation;
• Information concerning a lawsuit or judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer.

Can anyone get a copy of the report?

No, it’s given only to those with certain specified permissible purposes.  If someone has obtained your credit report without your permission or knowledge, contact our office immediately.

Do I have to be told before someone sees my credit report?

No, a person may request a consumer report without telling you so long as it is for a permissible purpose like financing a car or buying a house. However, a Consumer Reporting Agency may not provide a consumer report to an employer unless the employer has your written permission. Also, your written permission is needed before medical information may be reported by a Consumer Reporting Agency for credit, insurance, or employment purposes.

What if I think a Credit Bureau has violated my rights under the law?

A Consumer Reporting Agency or other person who has been found to have violated the Fair Credit Reporting Act must pay your actual damages, statutory damages and your attorney's fee.  Click here first or Self Help Tips on Correcting Your Credit Reports.  If the problems persist you may want to contact our office.

* Acknowledgment:  This consumer guide was developed based in part upon information provided by the Federal Trade Commission web site, an excellent source for accurate and up-to-date consumer information.