Loading the player...

What is the 'Fair Credit Reporting Act - FCRA'

The Fair Credit Reporting Act (FCRA) is the act that regulates the collection of credit information and access to your credit report. It was passed in 1970 to ensure fairness, accuracy and privacy of the personal information contained in the files of the credit reporting agencies. It requires that any person or entity requesting your report must demonstrate a permissible purpose for the information before it is released. It also designates the Federal Trade Commission (FTC) as the enforcement authority for the provisions of the act.

BREAKING DOWN 'Fair Credit Reporting Act - FCRA'

Under this act, you have the right to:

  • Know what's in your file.

  • Free file disclosure once per year from each of the major credit bureaus.

  • Ask for your credit score (there may be a fee).

  • Verify accuracy of report when required for employment purposes.

  • Notification if your file has been used against you.

  • Dispute and correct information that is incomplete or inaccurate.

  • Remove outdated, negative information (seven-years old or 10 years in the case of bankruptcy).
RELATED TERMS
  1. Credit Report

    A detailed report of an individual's credit history prepared ...
  2. Regulation V

    One of the regulations set forth by the Federal Reserve designed ...
  3. Credit Mix

    The types of accounts that make up a consumer’s credit report. ...
  4. Furnisher

    A company that provides information about a consumer, including ...
  5. Derogatory Information

    Information on a person's credit report that can be legally used ...
  6. Credit Rating

    An assessment of the creditworthiness of a borrower in general ...
Related Articles
  1. Personal Finance

    Take the Right Steps to Build Excellent Credit

    There are several things you can do to protect and improve your credit score.
  2. Personal Finance

    Which Is More Important: Credit Report or Credit Score?

    Here's the difference between a credit report and credit score, and which is more important.
  3. Personal Finance

    Should Your Credit Rating Scare You?

    Take the mystery out of credit scores by learning the most important ways it can impact your life.
  4. Personal Finance

    Fixing Your Credit Score: A Do It Yourself Guide

    Following these five steps can go a long way toward repairing a low score.
  5. Personal Finance

    How To Dispute Errors On Your Credit Report

    It just takes some time and effort to rebound from a nasty case of "credit rejection shock."
  6. Retirement

    6 Methods to Maintain a Healthy Credit Score During Retirement

    Learn how to improve your credit score during retirement. Your credit score still matters in retirement, and these tips can give it a boost.
  7. Personal Finance

    Credit Repair: How to Improve Your Credit Score

    There is no quick fix for a bad credit score but there are several strategies you can take to improve your credit rating and save money over the long term.
  8. Small Business

    How To Increase Your Appeal To Prospective Lenders

    Making a business eligible for loans/credit cards at the best possible rates requires crafting an excellent credit profile through the smart use of credit.
  9. Personal Finance

    Credit Score vs. Credit Report: Which Is Better?

    They sound alike, but can serve very different ends.
RELATED FAQS
  1. What’s the difference between a consumer disclosure and a credit report?

    Find out why consumer disclosures and credit reports are considered different documents, even though they contain similar ... Read Answer >>
  2. What's the difference between credit reports and investigative consumer reports?

    Learn about the major differences between two types of risk-evaluation reports: consumer credit reports and investigative ... Read Answer >>
  3. How do I get my free credit report and score from each credit bureau?

    Learn how to obtain copies of your credit report for free from the three credit bureaus and where you might find your credit ... Read Answer >>
  4. What is the difference between bad credit and no credit?

    The answer to this question will depend on what information (if any) is found on your credit report, such as any bankruptcy ... Read Answer >>
  5. How many free credit reports can you get per year?

    Obtain a free annual credit report online, by phone or via mail. These reports are offered through the Free Annual Credit ... Read Answer >>
Trading Center