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Useful Information about the Fair Credit Reporting Act

Credit Repair Introduction

What you don’t know about the Fair Credit Reporting Act could cost you.

The Fair Credit Reporting Act (FCRA), which is enforced by the Federal Trade Commission, is a federal act designed to ensure that consumers’ privacy is protected and that the credit reporting agencies maintain accuracy and abide by certain responsibilities.

Perhaps one of the most important features about the FCRA is that consumers are entitled to a copy of their credit report from all three, national credit reporting agencies – Equifax, TransUnion and Experian – once a year.

There are also other instances in which you may be entitled to a free credit report:

• - If you have been denied for credit, insurance or employment (you must ask for a copy of your credit report within 60 days of being denied)
• - If you are unemployed and plan to begin looking for a job within the next 60 days
• - If you are on welfare
• - If you have been a victim of fraud or identity theft

Under the FCRA, you also have rights regarding inaccuracies which appear on your credit report. The credit reporting agency in which the inaccuracy appears, as well as the creditor who provided the information, have an obligation and a responsibility to investigate and correct the inaccuracy within 30 days.

Simply inform the credit reporting agency in writing. The credit reporting agency must then forward the information to the creditor, who must then investigate and review the information and report back to the credit reporting agency.

Upon resolution of the inaccuracy, the credit reporting agency must provide you with the written results of the investigation, as well as a new copy of your credit report (if the dispute results in a change on your credit report).

Finally, the FCRA recognizes that the only individuals who can obtain a copy of your credit report are those individuals with legitimate business needs. In addition, your employer may only access your credit report upon your approval.

If you have experienced violations of the FCRA, you should report it directly to the Federal Trade Commission at:

Consumer Response Center — FCRA
Federal Trade Commission
Washington, D.C. 20580.

Common Questions about your Credit Report

Credit Score

We all know that we must stay on top of our credit to maintain a strong FICO score, but how many of us actually do just that?

Your ability to obtain a mortgage, purchase a car or secure a credit card all relies on your credit rating. It is therefore of the utmost importance that you order a copy of your credit report.

Luckily, under the nationwide Fair Credit Reporting Act (FCRA), which is protected by the Federal Trade Commission (FTC), you are entitled to a free copy of your credit report from all three of the consumer reporting agencies – Equifax, TransUnion and Experian – once a year.

Now that you are armed with this information, you can begin the process of reviewing your credit report.

Q: What type of information appears on my credit report?

A: Your credit report should contain your personal information, such as your name, your address and your source of income, as well as all sources of credit. It will also report any bankruptcies, arrests or cases in which you were sued.

Q: What is a typical credit report comprised of?

A: The four sections of a standard credit report include: your personal, or identifying, information; your credit history; public records; and inquiries.

Q: What are public records?

A: Public records include such things as bankruptcies and law suits.

Q: What are inquiries?

A: Every time you apply for credit of any kind, it is typically recorded as an inquiry. Excessive inquiries do not look very good in the eyes of a creditor; therefore, too many inquiries can lower your credit score.

Q: Do I need to look at my credit report through all three credit reporting agencies, or is the information the same?

A: Each credit reporting agency has their own set of information, as well as their own credit rating for you, so it is important to review your credit report through all three credit reporting agencies.

Q: Who uses the information on my credit report?

A: The three credit reporting agencies – Equifax, TransUnion and Experian – sell this information to creditors, insurers and even your employer. They then use this information to determine your eligibility for credit cards, insurance and employment, among many other things.

Q: What if I find a mistake on my credit report?

A: If you find a mistake or an inaccuracy, you must immediately contact the credit reporting agency and file a report. It is then the credit reporting agency’s duty to research the problem and correct it, if needed.