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Federal Trade Commission (FTC) enforced an act to upgrade the accuracy of the credit reports. This Fair Credit Reporting Act (FACT) "promotes privacy, accuracy and fairness of the information in the files of the nation`s credit reporting companies". This Fair and Accurate Credit Transactions Act of 2003 was passed on November 22, 2003 by United States Congress, and was signed by President George W. Bush on December 4, 2003. This Federal law permits consumers the right to see their credit records at the credit reporting bureaus.

A person can check their records for any incorrect, negative aspect of their records and is given a chance to correct them. When an employment firm needs to take a look at someone`s credit report, the person`s written permission is required. The consumer can prefer not to be included in telemarketing solicitations or in direct mail. According to Fair and Accurate Credit Transactions Act of 2003, every consumer is liable to get a free copy of their annual credit report for their credit analysis. This free credit report can be obtained from the three consumer reporting agencies, namely Equifax, Experian and TransUnion, which is accessible through the website,

The credit rating is a means of assessing the consumer`s capacity to be able to fulfill his/her financial commitments. Previous payments, debts and other dealings are examined. This enables the person to get a present loan, employment or licenses. The credit rating plays a major role in representing your financial dealings in the past and a delay or miss payment can result in a negative effect on your Fair Credit Report.

There are two kinds of credit reports, namely a consumer credit report and an investigative report. The former report includes your account details, loans procured and credit practice, whereas, the latter is more intricate and includes personal charges. It displays information regarding criminal history if any, the consumers` reputation and so on. Credit agencies can have information on bankruptcies up to ten years. The FCRA gives you the right to know when an employer or a banker denies your application, based on the negative credit report.

You must also educate yourself with the terms and conditions of FCRA. When you are denied of your application for credit report, you can sue the credit report agency and receive compensation for violation of act through FTC.