subject: Reasons Why the FCRA-Fair Credit Reporting Act Encourages Consumers to Fix Bad Credit [print this page] Credit Credit
The main principle of (FCRA) or the federal Fair Credit Reporting Act is to protect the rights of credit of the consumers. All the specialty credit reporting agencies and credit bureaus must follow the laws declared under FCRA. This federal law also encourages consumers to do credit repair so that they can enjoy certain benefits.
Benefits of the FCRA
The FCRA or Fair Credit Reporting Act is a federal law that is designed to help people secure their consumer rights involving credit. All credit reporting agencies and credit bureaus are required to follow the rules and regulations cited under the said law. For a consumer, you should find the time to read the law and know the most basic of your credit rights.
One of the most important of these rights is to know the information included in the credit file. As you know, the decision of banks and other creditors to approve your loan application is significantly dependent on the information found in your file, particularly your credit history. If your credit file contains a string of poor credit scores, you could count on your loan application being turned down. This is already sad, but it turns reprehensible when those poor credit scores are actually false that is, when the information in your file is wrong. It is your right, as included in the law, Thankfully, file disclosure is now assured by the FCRA.
Benefits of Good Credit
In connection to this matter, it can't be denied that the FCRA has an underlying message of encouragement to consumers nationwide when it comes to credit scores. The importance of having a reputable credit history cannot be denied. Creditors all over the country, thanks to the recent economic crisis that gripped not just the United States but also in many parts of the globe are now extra careful to choose which loans to approve. One of the most non-negotiable requirements is having a good credit score, which you can have by doing credit repair.
Consistent good credit scores signal the green light for most, if not all, creditors. Seeing them on your file, forwarded by credit reporting agencies and bureaus, gives them a feeling of respect towards you, prompting them to consider you as a low or even no-risk borrower. And this translates to instant approval for your loan application. Things change drastically the moment you have bad credit. Your value as a credible borrower drops significantly, and you are seen as a high-risk borrower. And your creditors are likely to turn down any loan application you have. Not only that, you're bound to have difficulty planning your financial future if you don't fix your credit.
The FCRA allows you to check the information on your file not just to right any possible wrong, but also to have a means of monitoring your credit score. Once you see that you have a currently bad credit, then you can work on it without delay, letting you improve your finances at the soonest possible time. This saves you from potentially strict payment terms and high down payment, not to mention the other disadvantages that come with having poor credit. The good news is that you don't have to do things on your own. These days, you can have an attorney assisted credit repair and have a professional do the fixing for you, with assured success.
Reasons Why the FCRA-Fair Credit Reporting Act Encourages Consumers to Fix Bad Credit
