The full text of the Fair Credit Reporting Act is available online; however, it is eighty-six pages long, making it difficult to determine its meaning quickly. Read on for a summary of what the Fair Credit Reporting Act consists of…

Consumer Reporting Agencies, also referred to as CRAs, gather and provide consumer data which is used in credit evaluations, and is the basis for a credit report, according to wikipedia.org. The Federal Trade Commission website indicates that such agencies sell the data to potential creditors, landlords, employers, insurers, and others. The data contains such information as details about how often an individual paid bills on time and if he or she has declared bankruptcy in the past. According to the FTC, the Fair Credit Reporting Act (FCRA) encourages CRAs to maintain fair, private (relatively), and accurate data.

As indicated by the FTC, the FCRA provides a number of rights to consumers in regard to the activities of CRAs. One of these rights is the ability to request the data on file with a particular CRA. Consumers are allowed to do this for free once every twelve month period from each national CRA, and are also eligible to request it for free in some situations, especially those involving fraud. Another right provided by the Act is the ability to request a numerical credit score from CRAs which use them; however, consumers have to pay for this in some situations.

The FCRA also requires anyone who applies the data provided by a CRA to deny or take other negative action against someone to notify the affected person of this and supply details on the CRA which generated the data. Additionally, consumers have the right to dispute data held by CRAs which is “incomplete” or false, and the CRA is required to remove such information if it cannot be verified. The Fair Credit Reporting Act also prohibits CRAs from reporting negative information over seven years old, and bankruptcies which happened over ten years ago, in most situations.

Other rights made available by the FCRA pertain to the privacy of consumers. According to the FTC, these rights restrict CRA data access to businesses and individuals with a “valid” reason, and require most types of employers to gain written consent from potential or current employees before requesting information from a CRA about them. It also provides a right allowing consumers to request not to receive unsolicited insurance and credit offers which are based upon credit report data.

The FTC also indicates that active-duty military personnel and victims of identity theft are entitled to more rights under the FCRA, and some individual states have laws providing additional rights related to consumer reporting agencies. Individuals can bring federal or state lawsuits against violators of the Fair Credit Reporting Act, including CRAs and some types of CRA data suppliers or users.

Your credit score can affect your ability to take such actions as obtaining a loan, purchasing a house, or applying for insurance. Monitoring this score can give you a better idea of whether or not you will be approved for such services and reveal the impact of any negative information on your credit report. While it is possible to request a free report once every twelve months (at AnnualCreditReport.com), there is usually an expense associated with obtaining credit scores. Some services will provide a one-time indication of credit scores in exchange for payment, while others require a monthly fee for continuous access to reports and/or scores.

Experian.com offers credit report and score monitoring service for $12.95/month (as of August, 2007) or a one-time report and score for $15. Equifax.com has a service which allows you to continuously monitor your scores and see their trend (over time) for $8.95/month. A service for monitoring both the score and report is offered by TransUnion.com for $9.95 per month, as well. Another option is myFICO.com, which enables continuous monitoring for $8.95/month or $89.95/year. Scores can also be obtained for a fee when requesting a free credit report from AnnualCreditReport.com. Some of these services offer free trial periods, usually 30 days.

If you apply for services which can be affected by your credit score fairly often and have some reason to be concerned about it (unpaid bills, past bankruptcy, etc.), it might be worth paying for a monthly monitoring service. Another potential reason for continuously monitoring scores and reports is to spot identity theft or errors (they occur fairly frequently) which could be harmful. On the other hand, a one-time request of your score may be preferable if you do not have reason to be particularly concerned about it or cannot afford continuous monitoring. It should be considered that keeping the $9-13/month in savings which would be spend on credit monitoring will make it easier to pay your bills if you eventually encounter financial difficulties, which might do more to benefit your credit score.

Credit cards are essential to helping you build a credit history and learning to manage debt responsibly. Unfortunately, they are a little too easy to use. With the buy now, pay later mentality consumers make bigger purchases more frequently. This habit is leading to more and more consumers being mired in credit card debt everyday.

If this situation sounds familiar, don’t worry. Here are 7 easy things you can do to lighten your debt and manage your plastic.

1. Stop adding debt to your current balance. This seems like a no-brainer, but you’d be surprises how many times we continue to pile more onto our already high balances. Avoid impulse buys and cut up your cards if necessary.

2. Pay off your highest interest rates first. If you carry multiple cards, focus on the one with the highest interest rate by paying 5%-10% more than the minimum while paying the minimum due on the rest of your cards. Once you pay the outstanding balance on the first card move on to the next card and do the same thing.

3. Ask for a lower interest rate on your current accounts. This seems simple and it is. Often getting a lower rate depends on who you talk to so be persistent. Ask for a supervisor if it’s necessary. If you’ve been a good customer you may also want to mention other offers you are receiving in the mail. Your issuer will be likely to lower your rate just to keep you as a customer.

4. Consider transferring your balances to a card with a lower introductory APR. Transferring is a great idea if you can pay off your balance in the introductory period – generally 6 to 12 months. Be sure to check if the APR applies to transfers and new purchases, as well as the terms and conditions of the card. Often low APR cards have fine print that raise your interest exponentially if you miss a payment or have debt beyond the introductory phase.

5. Talk with your bank or credit union about getting a personal loan for all your debt. This will give you a lower interest rate and minimize the number of payments you have to make each month.

6. If you own your own home and have enough equity (owing less than 80% of total value) you could roll all your debts into your home loan. The downside to this is that you will end up paying your credit cards debts off over a longer period.

7. Finally, don’t be afraid to seek professional help. Debt Counselors of America is a nonprofit company that assists consumers with financial problems. You can reach them by phone at 1-800-680-3328 or visit their website www.debtcounselorsofamerica.com.

Remember getting out of debt will take discipline and time. It’s important that you use credit responsibly and take control of your finances, especially to get the best deals for future investments, like buying a house. Be patient, stay focused on your goals and don’t expect instant miracles and it’ll pay off in the end.

Everyone in America is entitled to 1 free credit report from each of the 3 consumer reporting agencies (Equifax, Experian and TransUnion) every year according to the Fair Credit Reporting Act (FCRA.) These reports aren’t generated automatically which means if you want it, you have to request it. There are 3 ways this can be done.

Online – Although there are a plethora of ‘free credit report’ offers on line, there is only 1 government authorized website for getting your free credit report. It is www.annualcreditreport.com. Be careful to use the correct website address as there are some unethical companies out there that try to take advantage of the possible misspellings. If you go to one of these sites chances are you’ll end up pay monthly recurring fees for a membership that you didn’t want. Your credit report results are delivered immediately online.

By Phone – If you aren’t Internet-savvy, or just don’t want to deal with the hassle, you can call (877) 322.8228 to get your free credit report. You report will be processed and mailed within 15 days.

By Mail – This is the slowest way to go, but if it makes you feel easier you can mail your request to:
Annual Credit Report Request Service
P.O. Box 105281
Atlanta, GA 30348-5281
You report will be processed and mailed within 15 days of the company receiving your request.

It’s up to you if you want to order all 3 reports at once or space them out. Keep in mind if you space the requests out you’ll be able to monitor your credit reports more often, say every 4 months, which is a better idea.

When you submit your request you will be asked to provide a variety of information. Having the following on-hand will make your process much smoother.
• Name
• Address
• Social Security number
• Date of birth
• Previous address (if you’ve lived at your current residence less than 2 years)

There are other circumstances in which you may be eligible for an additional free credit report. These include being denied credit, an insurance policy or a job based on credit. If this happens you must submit your request within 60 days. You are also eligible if you are applying for unemployment or receiving public assistance. Additionally Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey and Vermont have state laws that give consumers constant free access to their credit reports.

If you are concerned about requesting your free credit report because you are worried about the companies discouraging you or trying to collect more personal information, fear not. The FTC has laws requiring that the agencies make the request process simple, advertisement-free and as minimally intrusive as possible. Also, the agencies cannot ask for any information beyond what is necessary to process your request. So, go ahead and order your credit report. It’s free, easy and a good idea to see what it contains, especially in today’s world of identity theft.