This is very important, since your credit history says a lot about your finances. You need to be able to trust that the information in your credit report is accurate – and that you can fix any information that might be in error. It is vital that you understand your rights, and that you exercise them when it comes to your credit history.

What is in the Fair Credit Reporting Act?

There are several provisions in the FCRA. Here are the most important highlights of what protections you have under the Fair Credit Reporting Act:

The right to view your credit report. Once every year, you are entitled to a free copy of your credit report from each of the three major credit bureaus. One top of that, you must be able to access your report any other time when you pay a small fee. Unfortunately, your credit score is not included with a standard report; that costs extra.

If you have been denied credit for any reason, you have a right to a free credit report from the reporting agency that was used to deny your application. The company that denied your application must provide the name and address of the credit reporting agency used. (Be aware, though, that you have to request your free credit report copy within 60 days.)

You have the right to know who has been looking at your credit report. If someone has been checking your report – whether for marketing purposes, employment purposes or credit verification purposes – you have the right to know. The information much include the companies that have asked for you information in the last year. It is two years if your credit has been checked by a potential employer.

You have the right to file a dispute with the credit reporting agency. If there is an error on your credit report, you have a right to dispute that. When you make such a dispute, both the credit reporting agency and the company that reported the information must investigate. If there is, in fact, an error, it must be fixed as soon as possible. Disputes must be investigated within 30 days of the filing.

You can add explanations to your credit report. If you feel that some information in your credit report require justification (such as a bankruptcy due to crushing medical bills), you have the right to add an explanation. Your side of the story has to be included in information that the credit bureau reports to inquiring lenders and other companies.

Information in your credit report must be up to date. Credit bureaus have to keep information as up to date as possible. Even so, it can take as long as 60 days for something to be reported. However, most things must be taken off your credit report within seven years. For bankruptcies, it is allowable to retain them on your report for 10 years.

Only certain businesses can access your credit report without your permission. Only companies concerned with finances and extending credit can check your credit report without your permission (this is done mostly for marketing). A potential employer, medical information, insurers and even utility providers need your permission to check your report. This is usually obtained through a waiver that you sign.

You can exclude yourself from marketing lists. Credit bureaus sell information to companies interested in extending credit and other financial services. If you do not want to receive unsolicited credit card offers or other materials, you can have your name removed from the lists.

You have the right to place a fraud alert on your credit report. If you are worried about your identity, you can place a fraud alert on your credit report. Even if you are not a victim of identity fraud, you can place this alert. This alert means that companies must verify your identity stringently before opening new accounts in your name. A fraud alert lasts for 90 days. But you can place as many new alerts as you would like on your report.

There are other rights offered under various state laws. You can learn more on the Federal Trade Commission Web site: www.ftc.gov.