Personal Finance and Family Finance ideas and articles from an LDS perspective.

6 Credit Rights

Lenders can get a little nasty sometimes and cause havoc on your credit score. That’s why our ‘friends’ in the federal government put together the Fair Credit Reporting Act a while back. Here’s six basic rights regarding your credit report and credit score that you should know about!

There’s a bunch of mumbo jumbo tied to the Fair Credit Reporting Act, and if you want to learn more about it – go to the source! I’d recommend (after reading the rest of this article) visiting www.ftc.gov/credit.

So then, what are your rights?

Tired of pesky mail from Lenders? You have the right to opt-out form pre-screened offers from obnoxious lenders and insurance companies. A lot of companies take a peek at your credit report even before you’ve asked for a loan. If they’re interested in you, they’ll send you mail and invite you to join – ‘pre-approved!’

If people use your credit report against you – you have a right to know it. Anyone who uses a credit report in their decision to turn you down for something, or change terms on a current loan or deal with you, must tell that they used the report, and who they received the report from (which agency).

You have the right to know what other people are saying about you! You can request a copy of your credit report from any of the nationwide (there are three) credit bureaus that have reports about you. In fact, the government said you are entitled to one free peak at your report each year. (You can get that report at a number of different places. The government sponsored site is AnnualCreditReport.com.)

You have the right to set errors strait. Is there incorrect information on your credit report? You have the right to dispute that information, and the credit agency must investigate and set it straight.

Consumer Reporting Agencies cannot hold grudges forever. In most cases, if you have negative information on your credit report, it cannot be kept on the report for more than 10 years.

Not just anyone can see your Report. Employers must ask your permission (generally) before seeing your report, and only those with valid needs outside employers are allowed to see the report (ie those you’ve signed an application for).

If these rights are new to you, or make you wonder about your own credit report or score it’s time to act - it could be a great way to improve your credit score!