When It Comes to Credit, Know Your Rights

Your credit score has more impact on your life than you may realize. Your credit report is reviewed every time you apply for a credit card, loan, insurance, when you apply for a job, or sign a lease. Federal laws exist to protect your right to obtain, use, and maintain credit and knowing your rights is key to maintaining your financial health.

Your consumer rights and the Fair Credit Report Act

In order to know what’s in your credit report, the Fair Credit Report Act (FCRA) enables consumers to request a free copy of their report once each year. To obtain your copy simply go to: www.annualcreditreport.com. By filling out the information at this website, you’ll be able to choose which of the three credit bureaus — Experian, Equifax, or TransUnion — you’d like to obtain your report from.

Accuracy and privacy of your credit report

The FCRA also protects the accuracy and privacy of the information about you that is sent to the nation’s credit reporting agences. Under the FCRA, you are entitled to:

Request a free copy of your credit report every year. You are also eligible to request a free copy of your report if a company denies your credit application
Know who has requested credit information about you within the past year
Dispute the person, company, or organization denying you credit if you believe the information they used to make the decision is inaccurate
Add a summary of explanation to your credit report if the issues aren’t resolved to your satisfaction

Anti-discrimination laws and credit applications

The Equal Credit Opportunity Act (ECOA) protects consumers against discrimination based on sex, race, marital status, religion, national origin, age, or receipt of public assistance.

Rules governing collections

The Fair Debt Collection Practices Act (FDCPA) prevents collectors from engaging in unfair, deceptive, or abusive collection practices. The FDCPA requires that debt collectors:

Contact you only between 8 a.m. and 9 p.m.
Identify themselves during the call
May not harass or abuse you
Must stop contacting at work you if request this in writing
May not lie when collecting debts

Remember that these are just general summaries of your rights as a consumer. For specific information about any of these topics, visit the Federal Trade Commission web site at www.ftc.gov.