If you have been refused credit, you should be aware of your rights under the Federal Trade Commission's Fair Credit Reporting Act. This federal law regulates the reporting of information by credit bureaus and protects you against the circulation of incorrect or obsolete information. (A credit bureau or credit reporting agency gathers records from your creditors that tell whether you are paying your bills, whether you have filed for bankruptcy, etc.) According to the Act:

1. You may obtain a free copy of your credit file from your local credit reporting agency within 30 days of having been denied credit (or for a small fee if you have not been denied credit or if your request is after 30 days). (Check your yellow pages under "credit reporting agencies" or "credit bureaus.")

2. By law, the credit bureau is allowed to report all accurate information for seven years (10 years for bankruptcy). If you believe an entry on your credit record is inaccurate, you may challenge it, in writing, and ask that the credit reporting agency verify the information with your creditor. If the credit bureau takes more than a "reasonable amount of time," usually considered to be 30 days, to verify the information, it must drop the entry from your file.