Laws are made for the general benefit of the people. It is law which gives a person justice and it is the violation of the same law that brings darkness in a person's life. The Federal Trade Commission (FTC) has designed the credit laws that secure the citizen's right to obtain, use and maintain credit. These laws however do not promise that everyone will receive credit. Instead, the credit laws ensure that all consumers are equal in matters of credit and it also takes care of the correction of any credit mistakes.
A good credit rating is essential as business houses inspect your credit history when they consider your applications for:
Your present depends on your history, especially in case of credit business. Based on your credit payment history, businesses can choose to grant or deny you credit, provided you are in fairly good terms with the creditor.
Sometimes, credit problems occur for unavoidable reasons:
- Problems like a temporary loss of income.
- Sudden illness.
- Computer errors.
Solving credit problems may take some time and patience, but for that you don't have to pass through an ordeal. Your credit payment history is recorded in either a file or a report. These reports or files are kept and sold by "consumer reporting agencies" (CRAs). One well known type of CRA is a credit bureau. You have a credit record on file at a credit bureau if you have ever put into service for a credit or charge account, a personal loan, insurance or a job. Your credit record contains some information about your income (sometimes they ask for the source also), debts and credit payment history. It also indicates whether you have been involved in any criminal activity or sued, arrested or has filed for bankruptcy.
There is law to ensure a smooth flow without considering the issues like sex, race, marital status, religion, age, national origin or receipt of public assistance. The Fair Credit Reporting Act or FCRA is there to help ensure that CRAs furnish correct and complete information to businesses to apply when evaluating your application. Your rights under the Fair Credit Reporting Act states you have all the right to get a copy of your credit report whenever required. The copy of your report must contain all of the information in your file at the time of your request. You have the right to know the name of anyone who received your credit report in the last year for most purposes or in the last two years for employment purposes. Any company who dares to deny your application must supply the name and address of the CRA they contacted and also provide the reason for the denial. You have all the right to get a free copy of your credit report when your application is denied because of information supplied by the CRA. Also there is a time limit that your request must be made within 60 days of receiving your denial notice.
There is a fair act for credit reporting which was stated above. All the rights explained above will help you to deal with credit related affairs.
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