What should one know about the fair credit reporting... - Limited/Bad/Fair Credit Questions


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Credit Card Applications » Questions » User Questions » Limited/Bad/Fair Credit » What should one know about the fair credit reporting act?

What should one know about the fair credit reporting act?

Answered on | Updated on February 7th, 2011
The content is accurate at the time of publication and is subject to change.

Almost every company that you interact with will want to get information about you through one of the three credit reporting bureaus. These companies could include those that give out loans, credit cards or even bank accounts. They could also include potential employers or universities. But it has been found that often customers point out that the credit reporting agencies do not assess the individual appropriately and hence give out erroneous reports to the companies that seek the same.

There are several rules that govern the way these reports are made out. But it is difficult for the common man to understand these rules. A lot of people are not in the know when it comes to questions about fair credit reporting act as they will not hear about this until an issue arises. It pays to learn things like this before you actually face a problem so that you may take proper action in advance. The fair credit reporting act ensures that the credit reporting agencies give out accurate information to the companies that seek them. It also ensures that the consumer may be able to see their reports whenever they need to, so that they may find any take recourse with the agency.

However, the question still remains as to what the fair credit reporting act will do for consumers whose report is not made out accurately. The act enforces the agencies to take quick and deliberate action in cases where a report is said to be erroneous. A bad mark on one’s credit report can stay like that for almost seven years. Hence it is very important that the agency attaches a note to any such black mark immediately if is found to be erroneous. This will ensure that the consumer does not have to pay dearly for no mistake of his.

It is usually very good in dealing with consumer complaints if done immediately. It is good for both the consumer and the credit reporting agency to give out accurate reports. It also works in the interests of the companies that seek these reports since they are scouting for potential customers or employees who are credit worthy. The credit bureaus gain nothing out of making erroneous reports and if there are any, it will only be due to clerical errors which might be done inadvertently. As a consumer, take time to check your credit records every year and file complaints if you find fault with anything on it.

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