Your credit report (and other “consumer reports”) can affect whether you’re approved for a loan, apartment, insurance rate, or even a job. The Fair Credit Reporting Act (FCRA) is a federal law designed to promote accuracy, fairness, and privacy in the information kept by consumer reporting agencies—including traditional credit bureaus and specialty agencies that track things like rental history, check-writing history, or other background information.
Below is a plain-English guide to the key rights the law gives you—and how to use them.
1) You must be told when a report is used against you
If a company takes “adverse action” because of information in a consumer report—such as denying credit/insurance/employment, or taking another negative action—it must tell you and provide the name, address, and phone number of the agency that supplied the report.
Why this matters: It tells you where the information came from so you can review it and dispute errors.
2) You have the right to see what’s in your file
You can request a file disclosure—a copy of the information a consumer reporting agency has about you. You’ll need to provide proper identification (which may include your Social Security number).
When it’s free
You’re entitled to a free disclosure in several situations, including if:
- you were subject to adverse action based on a report,
- you placed a fraud alert because you’re a victim of identity theft,
- your file has inaccuracies due to fraud,
- you’re on public assistance, or
- you’re unemployed and expect to apply for work within 60 days.
Also, consumers are generally entitled to one free disclosure every 12 months from each nationwide credit bureau and nationwide specialty consumer reporting agency (upon request).
3) You can request your credit score (sometimes for a fee)
A credit score is a numeric summary of creditworthiness based on information in credit bureau files. You may request a score from agencies that create/distribute scores used in certain mortgage-related contexts, though you may have to pay. In some mortgage situations, you’ll receive score information from the lender at no cost.
4) You can dispute incomplete or inaccurate information
If you find something wrong or incomplete, you can dispute it with the consumer reporting agency. The agency must investigate unless the dispute is considered frivolous.
What happens after a dispute
Consumer reporting agencies must correct or delete information that is inaccurate, incomplete, or unverifiable—typically within about 30 days. If they verify the information as accurate, they may continue reporting it.
Tip: Disputes go faster when you include documents that back up your claim (receipts, letters, account statements, court papers, etc.).
5) Old negative information has time limits
In most cases, consumer reporting agencies may not report negative information that is more than seven years old, and bankruptcies that are more than ten years old.
6) Access to your report is limited
A consumer reporting agency can generally share your information only with parties that have a valid need—commonly creditors, insurers, employers, landlords, or other businesses with a permissible purpose under the law.
7) Employers usually need your written consent
For employment-related consumer reports, agencies generally cannot provide your report to an employer (or potential employer) without your written consent given to the employer (with a noted exception in the trucking industry).
8) You can limit “prescreened” credit and insurance offers
If you receive unsolicited “prescreened” offers based on your report, those offers must include a way to opt out. The summary notes you can opt out via a nationwide opt-out number: 1-888-5-OPTOUT (1-888-567-8688).
9) You can place a security freeze—or use fraud alerts instead
Security freeze
You can place a security freeze on your credit report, which restricts release of your credit file without your express authorization. This can help prevent new accounts being opened in your name without consent—though it may also slow down legitimate credit applications you make later.
Important exception: A freeze generally doesn’t stop access by companies you already have an account with (or their collection agents) when they’re reviewing or collecting the existing account.
Fraud alerts
As an alternative, you can place:
- an initial fraud alert (typically 1 year, no cost), which signals businesses to verify your identity before extending new credit, and
- an extended fraud alert (typically 7 years) if you’re an identity theft victim.
10) You may be able to seek damages if the law is violated
If a consumer reporting agency—or in some cases, a report user or information furnisher—violates the FCRA, you may be able to sue in state or federal court.
11) Some people have additional protections
The summary notes that identity theft victims and active duty military personnel have additional rights.
A quick “do this now” checklist
- If you’re denied credit, insurance, housing, or a job: request the reason and the agency’s contact info.
- Pull your reports and review every section (accounts, addresses, employers, inquiries).
- If you spot errors: dispute them promptly, and keep copies of everything you send.
- If identity theft is a concern: consider a fraud alert or security freeze, depending on how often you apply for credit.
- If you’re tired of unsolicited offers: opt out using the provided number.