Understanding Your Rights Under the Fair Credit Reporting Act (FCRA)

An Easy-to-Understand Guide

If you've ever applied for a loan, rented an apartment, or even looked for a job, chances are your credit report played a role in the decision. But did you know you have legal rights when it comes to your credit information? The Fair Credit Reporting Act (FCRA) is a federal law that ensures your credit history is accurate and used responsibly.

Let’s break down what the FCRA is, why it matters, and how it helps you protect your credit.

What is the Fair Credit Reporting Act? 

The FCRA is a federal law passed in 1970 to promote the accuracy, fairness, and privacy of information in the files of credit reporting agencies like Equifax, Experian, and TransUnion. These agencies collect and share information about your credit history, which lenders, landlords, and employers may use to make decisions about you.

The law gives you specific rights to help you stay informed and in control of your credit information.

Why Does it Matter? 

Your credit report can have a big impact on your financial opportunities. An error on your report could potentially mean higher interest rates on loans or credit cards, being denied housing or a job, or paying more for insurance. Knowing your rights under the FCRA can help you protect yourself from these setbacks.

Your Key Rights Under the FCRA

1. You Have the Right to Know What’s in Your Credit File

• You’re unemployed and plan to apply for a job within 60 days.
• You’re on public assistance.
• You’re a victim of identity theft or fraud.
• You’ve been denied credit, insurance, or employment because of your credit report.
  
  

2. You Have the Rights to Be Told If Information in Your Report Was Used Against You

If someone uses your credit report to deny you a loan, job, or apartment, they must tell you. This is called an “adverse action notice.” It must include the name, address, and phone number of the credit bureau that provided the report.

3. You Have the Right to Dispute Innaccurate Information

If you find something wrong in your credit report, like a debt that isn’t yours or a late payment that was actually on time, you can dispute it for free. The credit bureau must investigate and correct or delete any errors. 

4. You Can Ask For Your Credit Score

Your credit score is a number that sums up your creditworthiness and is different from your credit report. While your credit report is free, you may have to pay a small fee to get your score.

5. You Can Limit Who Sees Your Credit Report

Only people with a valid reason can access your credit report, such as a lender, landlord, or employer (with your written permission). Your report can only be shared with companies that have a “permissible purpose,” which helps protect your privacy.

6. You Can Opt Out of "Prescreened" Credit Offers

Tired of getting credit card offers in the mail? You have the right to opt out of these by calling 1-888-5-OPT-OUT (1-888-567-8688) or visiting OptOutPrescreen.com. This removes your name from lists used by credit bureaus to send offers for five years. To opt out permanently, you’ll need to fill out a form and mail it in.

7. You Can Place a Fraud Alert or Security Freeze

If you think someone is trying to steal your identity, you have the right to place a fraud alert on your credit file.

You can also place a security freeze, which temporarily blocks access to your credit report until you lift the freeze. This is a stronger way to prevent identity theft, but it may delay credit approvals.

Reach out to Equifax, Experian, and TransUnion directly to request a fraud alert or security freeze. You can do this online, by phone, or by mail.

8. You May Have Legal Options

If a credit bureau, lender, or employer violates your rights under the FCRA, you may be able to sue them in state or federal court. You could receive money for damages, legal fees, and more. Common FCRA violations include reporting inaccurate information, failing to investigate disputes, and failure to notify you if information has been used against you. Be sure to consult an attorney if you believe there has been a violation.

Tips for Protecting Your Credit

• Check your credit report regularly. Get your free credit reports yearly and look for errors or unfamiliar accounts.
• Monitor your financial accounts. Regularly review bank and credit statements for suspicious activity and report it immediately.
• Keep records. Save copies of your credit reports, disputes, and any letters you send or receive.
• Protect your personal information. Shred sensitive documents like financial statements and credit offers once you no longer need them and be sure to use strong passwords for online accounts.
• Use fraud alerts or freezes if needed—especially if you’ve been a victim of identity theft. They’re free and won’t affect your credit score.

Tribal Lenders under the FCRA

While tribal lenders operate under the protection of tribal sovereignty, they are still expected to follow federal laws like the FCRA when lending to people outside their tribe. Groups like the Native American Financial Services Association (NAFSA) encourage tribal lenders to follow best practices and federal rules to protect borrowers and promote fair lending.

Protecting Your Financial Future

Understanding your rights under the Fair Credit Reporting Act is one of the most powerful tools you have to protect your financial health and opportunities. Just knowing the basics, like how to check your report, dispute errors, and limit access, can make a big difference.

Whether you're rebuilding your credit, applying for a loan, or just trying to stay informed, the FCRA helps you stand up for yourself and make sure your credit history reflects the real you.