History

The Fair Credit Reporting Act was first passed in 1970 to require credit bureaus meet minimum standards for guaranteeing the accuracy of the information in the credit reports. Since then the Act has been updated and revised.

Significance

The most significant part of the Act for consumers is that you are granted the right to check your credit report once every 12 months for free from the three major credit bureaus: Equifax, Experian and TransUnion (See resources).

Considerations

The Act does not mandate that credit bureaus release your credit score for free, just your credit report. However, the Act does mandate that your score be made available to you for a reasonable fee.

Features

The Act limits who can access your credit report and the information it contains. Only people who have a legitimate business interest and who have your permission, such as an application for a loan or lease, can obtain your credit records.

Time Frame

According to the Electronic Privacy Information Center, the Act restricts negative information reported on your credit report to be from the last seven years except bankruptcies, which can remain for 10 years and criminal convictions, which never have to be removed.

Source:

Federal Citizen Information Center: Fair Credit Reporting

Electronic Privacy Information Center: The Fair Credit Reporting Act (FCRA) and the Privacy of Your Credit Report

More Information:

Annual Credit Report

Federal Trade Commission: The Fair Credit Reporting Act