Working out a credit history can get confusing and frustrating. It almost seems like creditors want to keep the information to themselves. And each creditor has a different process, form, or secret code that has to be understood before the process can begin.
It may seem complicated but the good news is that every consumer has basic rights that each creditor is
required by law to fulfill. The Fair Credit Reporting Act was implemented by Congress in 1970 as a way to help consumers navigate the maze of personal credit.
Your Credit Rights
You have the right to know if your report has been used against you to deny your application for funding or for a company to take other negative actions. The company that denies the credit or takes the action must give you the name, address, and phone number of the agency that provided the information so that you have the ability to review it for yourself.
You have the right to know what they know. In 2003, the federal government passed a requirement that allows consumers to receive their credit histories for free once a year. Each credit agency will provide a full credit history (minus a credit score) to any consumer who requests it. You will have to provide proper identification to receive the copy of your report (this usually includes your social security number).
You have the right to request your own credit score without causing harm to that score. Multiple
inquires into your credit history and credit score will usually cause your FICO to drop. When you are the one making the inquiry it does not cause adverse reactions in your score.
You have the right to dispute the information in your credit report. If you feel that the information is incomplete or inaccurate then you can file a complaint with the reporting agency.
Some Reasons for Disputes
You have the right to request that disputed information is investigated and removed within 30 days of
your complaint if it is proven to be incorrect.
You have the right to limit who may view your credit report. Full access to your credit report is
limited to those people that you have authorized. Even partial information is only available to companies that have a valid need to review the information (creditors, insurers, and other similar
companies). Individuals do NOT have the right to review your personal credit history.
You have the right to seek damages from reporting agencies and companies that filed the information for any violation to the Fair Credit Reporting Act.
You may also have additional rights available under the state laws in your community. If you feel
that there is a problem with your credit history then contact your local consumer protection agency or state Attorney General’s office to get more direction or information.
The more you know about your credit rights then the better equipped you will be to handle any errors or problems that might show up on your credit report. It doesn’t take an expert to learn the basics, but like many things an expert will know more about the little things. You may want to consider talking
to a debt counselor if there are major problems with your credit history.
Next: Getting Help