- The FTC has warned that consumers who are desperate to improve their credit scores can be particularly vulnerable to scams. The commission warns not to be believe guarantees by credit repair companies. They are not capable of removing negative information from your credit report if the information is accurate.
- You do have the right to ask for an investigation of any item on your credit report that you dispute as inaccurate or incomplete. Some credit repair agencies will do this on your behalf. But the FTC says that you can also do this for little cost or for free on your own.
- Under the Fair Credit Reporting Act, you are entitled to a free copy of your credit report if a company takes adverse action against you. This could include denying an application for credit, insurance or a job. You are also entitled to a free copy of your report once a year if you are unemployed, on welfare of if your credit report is inaccurate because of fraud or identity theft.
- There are three companies that maintain credit reports: Experian, Equifax and TransUnion. You can order your reports from all three through a centralized website, annualcreditreport.com, or from a shared toll-free phone number, 1-877-322-8228. You can also download a form from ftc.gov/credit, fill it out and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, Ga., 30348-5281.
- If there are items in your credit report you want to dispute, you should make the request in writing to the credit reporting agency and the creditor that provided the inaccurate information. Cite your reasons for disputing each item and provide copies of any documentation you have that would show that the disputed items are inaccurate. You should send your request by certified mail and request a return receipt. They have 30 days to investigate your claim, unless they consider it frivolous. Items that are found to be inaccurate must be removed from your report.
