Credit Reporting

What the Fair Credit Reporting Act Means to You

In a sense, the world of credit reporting used to be like the Wild West. It was governed by vague laws that could be interpreted in many different ways. With the Fair Credit Reporting Act, though, that has all changed. Now credit reporting is governed by a universal law, which ensures fairness and accuracy for all.

You have the Right to Know

If something in your credit file has been used as cause to deny you credit, employment, or anything else, you have the right to know. You will have the ability to contact the credit reporting agency and get a copy of your credit report. Businesses that deny you a service because of your credit are required to give the contact information to you so you can easily contact the bureau that supplied the information.

You Can Dispute Items in Your Credit File

If there is something inaccurate or incomplete in your credit file, you have the right to dispute it. That is why it is so important to know what is in your credit report. From time to time, you might find something that is inaccurate that is damaging your credit.

Your Report Cannot Be Given to Employers without Written Consent

Your employers cannot see your credit report without your written consent. If you do not sign a consent form, they will not be able to retrieve a copy of your report. That protects individuals from fraudulent viewing of their report.

You Can Opt Out of Prescreened Offers

The Fair Credit Reporting Act also addresses prescreened offers that are based on the information on your credit report. Now, each offer must come with a phone number that allows consumers to opt out of receiving future mailings.

Length of Time for Reporting

At one time, bad things on a credit report could follow people around for years and years. Now, there is a limit to how long this type of information can show up on a credit report. Bankruptcies can only show up on a credit report for ten years, and other negative information can only show up for seven years. That gives consumers a chance to rebuild their credit over time.

The Fair Credit Reporting Act was put in place in order to protect the consumer. With it, consumers know their individual rights and they know what to expect with their credit. It allows for everyone to operate under the same rules.