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Three Bureau Credit Report
Experian
Three Bureau Credit Report
Equifax
TransUnion Credit Bureau
TransUnion

Laws That Affect the Credit Score

Several laws have been enacted over the years to protect the individual and their right of privacy. These laws prevent everyone from gaining access to the information and protect the consumer's right to know what is in their credit report. The most famous of these laws is the Fair Credit Reporting Act, which was enacted in 1971.

A consumer has the following rights based on this act:

  • A copy of their credit report (they may be charged a fee to obtain it)
  • A free copy if they are turned down for credit
  • Know who has requested a copy of the report in the last six months
  • Be able to report any errors found in the report and the agency must respond within 30 days
  • Any errors that are proven must be removed within 30 days
  • Make comments on the report
  • Have negative credit removed after a certain period of time
  • Prevent the agency from selling the report to credit card companies or other businesses

In 2003, another law was enacted that adds to the Fair Credit Reporting Act. It is the Fair and Accurate Credit Transactions Act of 2003 and it allows a person to get one copy of their report for free each year.

An individual may request a free copy of their report from each of the three agencies in a year. They can request them all at the same time or at different times. The report does not include their credit score, but they can purchase that from the agencies. They can also purchase additional copies of their report from the agencies and other websites.

Amendments to the Fair Credit Reporting Act have changed how businesses can use the information in the credit report. Any business that refuses credit to a customer based on the credit report must send in writing a response to indicate the reasons. Other businesses such as property management companies that use credit reports to select tenants must also disclose the reasons they take an adverse action even if they do not turn the person down.

For instance, they may require a co-signer or higher security deposit even if they accept a tenant. However, this is still considered an adverse action because it is separate from what they would require of the general population.

Other amendments have been created to protect individuals from identity theft. One such change is the truncated social security number that allows the consumer to request that only the last four digits of their number be included in the report sent to third parties.

  1. The Truth About Credit Scores
  2. Factors that Affect the Credit Score
  3. How a Credit Score is Calculated
  4. The Three Credit Agencies
  5. What is the FICO Score?
  6. Laws That Affect the Credit Score
  7. What Companies and Institutions Look For
  8. How to Improve Your Credit Score

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