Fair Credit Reporting Act And Credit History

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Fair Credit Reporting Act/Credit History The Fair Credit Reporting Act was established in 1970. This act is in accordance on how a credit agency reports credit information. The Fair Credit Reporting Act serves to protect the privacy and integrity of clients. It allows individuals to adjust any inaccurate information in a credit report and provides a solution if a credit agency violates your rights. According to the Privacy Rights Clearinghouse (2014), “anyone with a "legitimate business need" can gain access to your credit history.” (2014). The businesses that have access to your credit report include, landlords, insurance companies, employers, Government agencies, child support agencies. Having a credit report on file is…show more content…
This information helps determine if the tenant is likely to pay their bills on time. Finding a job is an advantage to having a good credit record. Employers have the option to look at an applicant’s credit history to decide whether or not that person is reliable. If an employment agency is checking a credit report they usually check it for fraudulent activity. Other company’s check for derogatory information. If those types of things are found then the applicant may have some explaining to do. Not every job looks at credit history. However, some jobs do such as, accounting, finance, or a high ranking position in a company. A person with good credit history shows if this person is responsible and if that person is able to be trusted with their finances. On the other hand, there are certain drawbacks of having a credit record on file. Some offenses to a credit record are minor and others are major. Bankruptcy is a case where a consumer is unable to pay outstanding debts. According to Investopedia (2001), “Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy” (2001). After the proceedings the individual is given another chance to pay off the debt. Bankruptcy is on file for ten years. During this time, the person or business responsible may struggle with the loss of property. Moreover, other losses may persist that include, loss of income, poor credit score,
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