Federal Trade Commission | consumer.ftc.gov

Credit Repair

How 

to Help 

Yourself

1

You see the ads in newspapers, on TV, and online. You hear them on the radio. You get fliers in the mail, 

email messages, and maybe even calls offering credit 

repair services. They all make the same claims:

“Credit problems? No problem!”

“We can remove bankruptcies, judgments, liens, and bad 

loans from your credit file forever!”

“We can erase your bad credit — 100% guaranteed.”

“Create a new credit identity — legally.”

Do yourself a favor and save some money, too. Don’t 

believe these claims: they’re very likely signs of a scam. 

Indeed, attorneys at the Federal Trade Commission, 

the nation’s consumer protection agency, say they’ve 

never seen a legitimate credit repair operation making 

those claims. The fact is there’s no quick fix for 

creditworthiness. You can improve your credit report 

legitimately, but it takes time, a conscious effort, and 

sticking to a personal debt repayment plan.

Your Rights

No one can legally remove accurate and timely negative 

information from a credit report. You can ask for an 

investigation — at no charge to you — of information in 

your file that you dispute as inaccurate or incomplete. 

Some people hire a company to investigate for them, but 

anything a credit repair company can do legally, you can 

do for yourself at little or no cost. 
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By law:

● You’re entitled to a free credit report if a 

company takes “adverse action” against you, like 

denying your application for credit, insurance, 

or employment. You have to ask for your report 

within 60 days of receiving notice of the action. 

The notice includes the name, address, and phone 

number of the consumer reporting company. You’re 

also entitled to one free report a year if you’re 

unemployed and plan to look for a job within 60 

days; if you’re on welfare; or if your report is 

inaccurate because of fraud, including identity theft.

● Each of the nationwide credit reporting companies 

— Equifax, Experian, and TransUnion — is 

required to provide you with a free copy of your 

credit report once every 12 months, if you ask for 

it. To order, visit annualcreditreport.com, call 

1-877-322-8228, or use the form at the center of this 

booklet. You may order reports from each of the 

three credit reporting companies at the same time, or 

you can stagger your requests throughout the year.

● It doesn’t cost anything to dispute mistakes or 

outdated items on your credit report. Both the 

credit reporting company and the information 

provider (the person, company, or organization that 

provides information about you to a credit reporting 

company) are responsible for correcting inaccurate 

or incomplete information in your report. To take 

advantage of all your rights, contact both the credit 

reporting company and the information provider.
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DIY

Step 1: Tell the credit reporting company, in writing, 

what information you think is inaccurate. Include copies 

(NOT originals) of any documents that support your 

position. In addition to including your complete name 

and address, your letter should identify each item in your 

report that you dispute; state the facts and the reasons 

you dispute the information, and ask that it be removed 

or corrected. You may want to enclose a copy of your 

report, and circle the items in question. Send your letter 

by certified mail, “return receipt requested,” so you can 

document that the credit reporting company got it. Keep 

copies of your dispute letter and enclosures.

Credit reporting companies must investigate the items 

you question within 30 days — unless they consider 

your dispute frivolous. They also must forward all the 

relevant data you provide about the inaccuracy to the 

organization that provided the information. After the 

information provider gets notice of a dispute from the 

credit reporting company, it must investigate, review the 

relevant information, and report the results back to the 

credit reporting company. If the investigation reveals that 

the disputed information is inaccurate, the information 

provider has to notify the nationwide credit reporting 

companies so they can correct it in your file.

When the investigation is complete, the credit reporting 

company must give you the results in writing, too, and a 

free copy of your report if the dispute results in a change. 

If an item is changed or deleted, the credit reporting 

company cannot put the disputed information back in 

your file unless the information provider verifies that it’s 
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Date

Your Name

Your Address

City, State, Zip Code

Complaint Department

Name of Company

Address

City, State, Zip Code

Dear Sir or Madam:

I am writing to dispute the following information in my file. 

The items I dispute also are circled on the attached copy of the 

report I received.

This item (identify item(s) disputed by name of source, such as 

creditors or tax court, and identify type of item, such as credit 

account, judgment, etc.) is (inaccurate or incomplete) because 

(describe what is inaccurate or incomplete and why). I am 

requesting that the item be deleted (or request another specific 

change) to correct the information.

Enclosed are copies of (use this sentence if applicable and 

describe any enclosed documentation, such as payment records, 

court documents) supporting my position. Please investigate 

this (these) matter(s) and (delete or correct) the disputed item(s) 

as soon as possible.

Sincerely,

Your name

Enclosures: (List what you are enclosing.)

Sample Letter

Use this sample 

letter to help write 

your own.
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accurate and complete. The credit reporting company 

also must send you written notice that includes the name, 

address, and phone number of the information provider. If 

you ask, the credit reporting company must send notices 

of any correction to anyone who got your report in the 

past six months. You also can ask that a corrected copy of 

your report be sent to anyone who got a copy during the 

past two years for employment purposes.

If an investigation doesn’t resolve your dispute with the 

credit reporting company, you can ask that a statement of 

the dispute be included in your file and in future reports. 

You also can ask the credit reporting company to give 

your statement to anyone who got a copy of your report 

in the recent past. You’ll probably have to pay for this 

service.

Step 2: Tell the creditor or other information provider, 

in writing, that you dispute an item. Include copies (NOT 

originals) of documents that support your position. Many 

providers specify an address for disputes. If the provider 

reports the item to a consumer reporting company, it must 

include a notice of your dispute. And if the information 

is found to be inaccurate, the provider may not report it 

again.
You have the right to get a free copy of your credit file disclosure, commonly called a credit report, once every 12 months, from each of

the nationwide consumer credit reporting companies - Equifax, Experian and TransUnion.

For instant access to your free credit report, visit www.annualcreditreport.com.

For more information on obtaining your free credit report, visit www.annualcreditreport.com or call 877-322-8228.

Use this form if you prefer to write to request your credit report from any, or all, of the nationwide consumer credit reporting companies. The

following information is required to process your request. Omission of any information may delay your request.

Annual Credit Report Request Form

Once complete, fold (do not staple or tape), place into a #10 envelope, affix required postage and mail to:

Annual Credit Report Request Service P.O. Box 105281 Atlanta, GA 30348-5281.

Social Security Number:

- -

Date of Birth:

/ /

Month Day Year

First Name M.I.Last Name JR, SR, III, etc.Current Mailing Address:

Fold Here Fold Here

Please use a Black or Blue Pen and write your responses in PRINTED CAPITAL LETTERS without touching the sides of the boxes like the examples listed below:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0 1 2 3 4 5 6 7 8 9
If additional information is needed to process your request, the consumer credit

reporting company will contact you by mail.

Your request will be processed within 15 days of receipt and then mailed to you.

Copyright 2004, Central Source LLC

EquifaxExperianTransUnion

I want a credit report from (shade

each that you would like to

receive):

Shade here if, for securityreasons, you want your creditreport to include no more than

the last four digits of your

Social Security Number.

Shade Circle Like This >

Not Like This >

House Number Street NameCity State ZipCode

ZipCode State City

Apartment Number / Private Mailbox For Puerto Rico Only: Print Urbanization Name

Street Name House Number

Previous Mailing Address (complete only if at current mailing address for less than two years):

Fold Here Fold Here

For Puerto Rico Only: Print Urbanization Name Apartment Number / Private Mailbox

31238
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Reporting Accurate Negative Information

When negative information in your report is accurate, 

only time can make it go away. A credit reporting 

company can report most accurate negative information 

for seven years and bankruptcy information for 10 years. 

Information about an unpaid judgment against you can be 

reported for seven years or until the statute of limitations 

runs out, whichever is longer. The seven-year reporting 

period starts from the date the event took place. There 

is no time limit on reporting information about criminal 

convictions; information reported in response to your 

application for a job that pays more than $75,000 a year; 

and information reported because you’ve applied for more 

than $150,000 worth of credit or life insurance.

The Credit Repair Organizations Act

The Credit Repair Organization Act (CROA) makes 

it illegal for credit repair companies to lie about what 

they can do for you, and to charge you before they’ve 

performed their services. The CROA is enforced by the 

Federal Trade Commission and requires credit repair 

companies to explain:

● your legal rights in a written contract that also 

details the services they’ll perform

● your three day right to cancel without any charge

● how long it will take to get results

● the total cost you will pay

● any guarantees
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What if a credit repair company you hired doesn’t live up 

to its promises? You have some options. You can:

● sue them in federal court for your actual losses or 

for what you paid them, whichever is more

● seek punitive damages — money to punish the 

company for violating the law

● join other people in a class action lawsuit against the 

company, and if you win, the company has to pay 

your attorney’s fees

Report Credit Repair Fraud

State Attorneys General

Many states also have laws regulating credit repair 

companies. If you have a problem with a credit repair 

company, report it to your local consumer affairs office or 

to your state attorney general (AG, www.naag.org).

Federal Trade Commission

You also can file a complaint with the Federal Trade 

Commission. Although the FTC can’t resolve individual 

credit disputes, it can take action against a company 

if there’s a pattern of possible law violations. File 

your complaint online at ftc.gov/complaint or call 

1-877-FTC-HELP.
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Where to Get Legitimate Help

Just because you have a poor credit history doesn’t mean 

you can’t get credit. Creditors set their own standards, 

and not all look at your credit history the same way. Some 

may look only at recent years to evaluate you for credit, 

and they may give you credit if your bill-paying history 

has improved. It may be worthwhile to contact creditors 

informally to discuss their credit standards.

If you’re not disciplined enough to create a budget and 

stick to it, to work out a repayment plan with your 

creditors, or to keep track of your mounting bills, 

you might consider contacting a credit counseling 

organization. Many are nonprofit and work with you 

to solve your financial problems. But remember that 

“nonprofit” status doesn’t guarantee free, affordable, or 

even legitimate services. In fact, some credit counseling 

organizations — even some that claim nonprofit status 

— may charge high fees or hide their fees by pressuring 

people to make “voluntary” contributions that only cause 

more debt.

Most credit counselors offer services through local 

offices, online, or on the phone. If possible, find an 

organization that offers in-person counseling. Many 

universities, military bases, credit unions, housing 

authorities, and branches of the U.S. Cooperative 

Extension Service operate nonprofit credit counseling 

programs. Your financial institution, local consumer 

protection agency, and friends and family also may be 

good sources of information and referrals.
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If you’re thinking about filing for bankruptcy, be aware 

that bankruptcy laws require that you get credit counseling 

from a government-approved organization within six 

months before you file for bankruptcy relief. You can find 

a state-by-state list of government-approved organizations 

at www.usdoj.gov/ust, the website of the U.S. Trustee 

Program. That’s the organization within the U.S. 

Department of Justice that supervises bankruptcy cases 

and trustees. Be wary of credit counseling organizations 

that say they are government-approved, but don’t appear 

on the list of approved organizations.

Reputable credit counseling organizations can advise 

you on managing your money and debts, help you 

develop a budget, and offer free educational materials 

and workshops. Their counselors are certified and 

trained in the areas of consumer credit, money and 

debt management, and budgeting. Counselors discuss 

your entire financial situation with you, and can help 

you develop a personalized plan to solve your money 

problems. An initial counseling session typically lasts an 

hour, with an offer of follow-up sessions.
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For More Information

The FTC works to prevent fraudulent, deceptive and 

unfair business practices in the marketplace and to provide 

information to help consumers spot, stop and avoid them. 

To learn more about credit issues and protecting your 

personal information, visit consumer.ftc.gov.

To file a complaint or get free information on consumer 

issues, visit consumer.ftc.gov or call toll-free, 

1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-

653-4261. Watch a video, How to File a Complaint, 

at consumer.ftc.gov/media to learn more. The FTC 

enters consumer complaints into the Consumer Sentinel 

Network, a secure online database and investigative tool 

used by hundreds of civil and criminal law enforcement 

agencies in the U.S. and abroad. 

Federal Trade Commission

consumer.ftc.gov

November 2012