About Your Legal Rights On Credit Scores

2019/02/25

You have a right to view your credit reports and to dispute any discrepancies. In fact, federal laws require the credit reporting agencies to provide you with a free credit report once in 12 months. There are more consumer laws to protect you as a consumer. Learn more here.

The Most Important Points About Your Legal Rights On Credit Scores Are

Credit reporting agencies (Equifax, TransUnion, and Experian) must provide access to credit report. A free credit report from the credit agencies is also a legal right.

Customers can challenge inaccurate or wrong entries in their credit report or credit history.

This was not the case while the credit reporting system came into being. Consumers had no idea what went into their credit reports and how the creditors used the credit history. Congress introduced the rules protecting the rights of consumers. Now, an average consumer can view, correct and even challenge the details in your credit reports.

Fair And Accurate Credit Transactions Act (FACTA)

This rule requires credit reporting agencies to give customers access to credit report. It also requires a free credit report once a year. This rule gives you access to your credit report. You can order your annual credit report at AnnualCreditReport.com.

Fair Credit Billing Act (FCBA) And Fair Credit Reporting Act (FCRA)

In case you spot some inaccurate entries in your credit report, you have a legal right to challenge such information. The credit agencies have to respond to your request in 30 days. Similarly, if they remove an item following your request, they can’t re-enter the information in your report without notifying you.

In addition, the creditors can send only accurate information to the credit reporting agencies. The laws guarantee accuracy, fairness and privacy while processing credit reports.

Fair Debt Collection Practices Act (FDCPA) requires the bill collectors to give you notice and validate their right to collect debts from you. You can also dispute any such collection. When you dispute, the collectors can’t contact you until the dispute is solved.

Photo Credit: Freecreditreportsinstantly.org

In case someone else’s info enters your credit report, you can send a ‘do not confuse’ statement to the reporting agencies.

Keep in mind that when you dispute items in your credit report, it will be difficult to get new credit. The creditors will see ‘file under review’ notice whenever they try to access your report.

When applying for credit, you let the creditors check your credit report. Such inquiries (called hard queries) are entered into your report and will stay there for a maximum 12 months. You can check your credit report any number of times. Your existing creditors might also check your credit report before offering to increase credit limit available to you.

They are soft queries and will not be visible in credit report. While the hard queries can negatively affect your credit score, the soft queries have no impact on your credit score. Creditors also can’t access your credit report without your express consent. In case your loan application is rejected, you have to right to receive communication from the creditor regarding which agency has supplied the credit report.

Federal rules are there to help consumers get a good deal on all areas of credit. Having a good idea about your rights and limitations will help you better plan your course of action while applying for a loan, while challenging negative information and when your loan application is rejected.

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