What is the FCRA and why is it so important that you know?
F.C.R.A. stands for the Fair Credit Reporting Act and this is a consumer protection law that helps to ensure the accuracy, fairness and privacy of the information in a consumer’s credit bureau files.
The purpose of this federal law is to regulate the way credit agencies can collect, access and share the information in your personal credit reports.
Why is this so important?
Because a person’s credit score can wind up defining their financial standing and ultimately, their ability to live a life that they have always dreamed of. Said differently, your credit score is the “judge and jury” that determines if you are able to borrow money, whether it be to get a mortgage, finance a new car or apply for credit cards. And a lower credit score can also impact the Interest rates you are charged.
Errors happen but they must be corrected
Though errors can happen, they can be ultimately crippling if they aren’t corrected. And again, this is where FCRA comes to the rescue: correcting any information that shows up on your credit report that just isn’t true.
One example of an error might be a ‘balance due’ notation when the account was actually settled or paid. Another would be duplicate accounts that are showing up on your credit report, as creditors are only allowed to list an account once. This can sometimes happen when a debt buyer and the original creditor are both reporting a balance but only one of these are legally permitted to report a balance due.
A third example would be when a debt has been a discharged under a bankruptcy but your credit report still shows a balance, which is definitely an error. Finally, any type of incorrect information that shows a wrong name, social security number or even your date of birth can create serious problems and wreck your credit score.
When it comes to correcting errors and improving credit scores, it’s not a game to be taken lightly. And in order to do battle with the three credit reporting agencies, you must have the paper work, or proper documentation.
Once you have all the documentation to prove that you have errors on your report, Credit Koda will contact the credit bureaus and request that they immediately remove the inaccuracies. However, if these errors are not immediately corrected, Credit KODA will then work with its network of attorney’s to file a lawsuit under the FCRA. Again, your paperwork that proves that mistakes were made is the “nails” and FCRA provides the “hammer” for us to get the job done: correcting your personal credit score.
Hunt down your credit scores at least once a year
The FCRA requires that all three credit bureaus – Equifax, Experian and TransUnion – provide you a free copy of your credit report every 12 months so be sure to request those each and every year. To order your reports, visit annualcreditreport.com, and follow the directions.
In doing so, you will be able to check for any errors, have them corrected quickly and then get on with living the life you deserve.