As a consumer, you likely want to know what information is on your credit report. You probably also want this information to be fair, accurate and private.
The Fair Credit Reporting Act is legislation that requires credit bureaus and other companies that collect consumer information to take certain steps to protect that information, states the Federal Trade Commission. More specifically, this law dictates how these agencies can use, share, access and collect information taken directly from consumer reports.
The purpose of the FCRA
The information on your credit report can affect whether you are able to get a loan, the percentage rate on your credit cards and even whether a landlord will rent to you. The FCRA determines how other parties can use the information on your credit report and what information they can access.
You have many rights under the FCRA. For example, if an employer, insurance company or credit card company denies your application, you have the right to know which information from your file impacted this decision. You can also access any information consumer reporting agencies have on your file and you have the right to dispute any inaccuracies under the FCRA.
Knowing what is on your credit report can help you correct inaccuracies that could impact decisions made by a potential employer, insurer or loan provider. Taking action to fix issues with your credit report may require legal action to resolve the problem and ensure the accuracy of your consumer profile.