How to Benefit From the Fair Credit Report

The Fair Credit Reporting Act (FRCA) was created to protect the privacy of consumers, promote consumer rights and require accurate reporting by Consumer Reporting Agencies (CRAs). Here are the most common ways to benefit from fair credit reporting.

Instructions

Difficulty: Moderate

1. Check your credit reports for free annually through the three major national credit bureaus (Experian, TransUnion and Equifax) by following the Annual Credit Report link in the Resources section. If any part of your report is inaccurate, immediately contact these bureaus for an investigation. You also have the right to and should ask for your credit score, but keep in mind that this is not a free service.
2. Request detailed information about any information provider or CRA that provided information in a report that negatively impacted your life. Credit reports are not only accessed by credit card companies, but also by banks, potential employers or landlords, car dealers, insurance companies and federal agencies in the case of security or clearance investigations, identity theft or fraud. An inaccurate report can have long-term negative effects on your finances, employability and even the opportunity to buy or build a home.
3. Contest inaccurate information by writing to both the CRA, or if applicable, to the provider that claimed the inaccurate information. Contesting or disputing any part of your report in writing provides you with a paper trail and record of your attempts to correct inaccuracies. If you believe that inaccuracies are the result of identity theft or that a company was deceptive, committed fraud or an Internet crime, you also have the right to contact the Federal Trade Commission (FTC), your state's Attorney General's office and the Federal Bureau of Investigation (FBI) for additional investigations.
4. Ask your creditor why a credit application was denied and, if you need additional information, contact the CRA and ask the same. The FRCA give you the right as a consumer to know why any type of credit application is denied.
5. Sign up to have your name removed from mailing lists for pre-approved credit or insurance offers for up to two years by contacting the three major national credit bureaus.
6. Sue if no other option is available. If a CRA or information provider violates FRCA regulations, you have the right to sue them in a court of law and request monetary settlement of damages and coverage of attorney or related court fees.

Tips & Warnings

• This information is not to be construed in any way as legal advice, but instead outlines some of the most common benefits of the FRCA as noted in the public domain.