What are my Consumer Credit Rights?

Worried that your employer can take a look at your credit file whenever they feel like it? Well, you shouldn't be. Yes, employers can request a copy of your credit report. But not whenever they want, and not without your permission. Federal law carefully regulates how information about your credit can be used. The two most important laws for you to know about are the Equal Credit Opportunity Act (ECOA) and the Fair Credit Reporting Act (FCRA).

The ECOA mandates that every consumer who applies for credit has an equal chance to obtain it. This is not a guarantee that credit will be granted, but rather that the factors used to determine whether an application is accepted or rejected will be consistent and consistently applied for all applicants.

The FCRA ensures that consumers' rights and privacy are protected even as the credit reporting industry makes it possible for credit histories to be transmitted so quickly that stores can offer instant credit to consumers who qualify.

Requirements for Accessing Credit Reports

To guard against abuse and to protect your privacy, the FCRA requires that before being allowed access to credit information, businesses or employers must offer reasonable proof that they will be using the information for no other purpose beside those permissible under federal law.

The only time your credit report can be accessed without your permission is in prescreening for credit offers or if a judge subpoenas your credit information.

Accepted or Rejected?

If you have been denied credit or turned down for a job because of the contents of a credit report, the business must also provide you with information about how to contact the credit bureau that supplied the credit report. This is one of the few circumstances under which you are entitled to a free credit report directly from the credit bureau.

It's important that you regularly check your credit report to make sure possible inaccuracies aren't impacting your credit rating-or your ability to qualify for your dream job.

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