Facts About the Fair Credit Reporting Act

Your credit is important to you. A good credit score helps you when you apply for credit cards, car loans, personal loans, and might even be considered when you rent an apartment or apply for a job. Keeping on top of your credit helps keep your score high, and the Fair Credit Reporting Act is a law that helps you make sure that your credit score is accurate. Here are a few facts about the Fair Credit Reporting Act and how it helps protect you.

We hear about data protection all the time now, but when records were first stored on computers, it was a new concept. The Fair Credit Reporting Act was one of the first data protection laws, first enacted in 1970 to protect consumers just like you. It included regulations that gave you certain rights when it comes to your credit information. 

You have the right to view your credit file. You have a right to know what is in your credit file, and the law made sure that you could access it. To do that, you’ll need proof of your identity, including your Social Security number. You can access your credit file for free once a year, and you can also access it for free if you’ve been denied credit, if you’ve become a victim of identity theft, or if you are on public assistance or are unemployed and will be filing for unemployment benefits soon. It’s important to see what’s in your file once each year to be sure everything is accurate.

Creditors have to tell you if they used your credit information to deny you credit. If you’ve been denied credit or turned down for a job or a rental based on your credit report information, that person has to give you the name of the credit reporting agency and its contact information so you can review your file. 

You have a right to know what your credit score number is. While you do have this right to see your credit score, you’ll have to pay a fee. A credit score, that number most people talk about when referring to their credit, is different from a credit report. Your credit report lists the different accounts you have open, whether you’ve paid them on time or not, how much you owe, and other information. Your credit score summarizes different elements of your credit, like your on-time versus late payments, how much available credit you have, and other factors, to create that numerical score. 

Your credit report is private. In order to view your credit file, a person must have what is called a “valid need.” That requirement is usually satisfied when you fill out an application for credit, an apartment, or a job, and that person must prove that they have that valid need before they can access your file. And if that person is a potential employer, they have to show that you have given them specific written consent for them to see your credit report. 

You can dispute information that isn’t right. Mistakes happen, especially on computerized credit reports. If you see something that isn’t right, you can dispute it by following special procedures. Credit Refit can help you navigate through all these procedures to make sure everything on your file is accurate. Then, we’ll help you learn ways to improve your credit score with the help of our experienced credit team.
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To find out just how Credit Refit can help you, give us a call at ​(312) 883-4412 or complete our online form. Our customer service team can help you determine the best options for your needs. You can also earn referral credits just by sharing Credit Refit with friends & family. Learn how to earn $25 per referral that can be easily applied monthly to your account!