What are my credit rights?

A good credit rating is very important. As US Citizens, we are granted many rights that allow us to monitor our credit, protect our credit, and rebuild our credit when it needs a lift. It makes sense to educate yourself on your credit rights so you can take advantage of them. Face it, your credit is invaluable.

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First, you should remember that you have a right to get a free copy of your credit report once a year. You should always take advantage of this. First, it doesn't cost you a penny. Second, it can help you identify potential errors in your credit history or help you devise a plan for improving your credit score.

Your credit rights do not end with a peace of paper. Laws govern other aspects of applying for credit, protecting you from unfair treatment. You can not be denied credit based on race, religion, or any irrelevant factor. If you are, in fact, denied credit, you are entitled to find out the reason why.

You have the right to question the validity of any item on your credit report. You can dispute any item. Unless it can be proven that the item is valid, it must be removed from your credit report. You can not be held accountable for any unwarranted posting. It's important to look for this. No system is flawless, and clerical errors can be made. You won't know about them unless you monitor your credit, checking the accuracy. Payments can be posted incorrectly, resulting in damage to your credit score.

These regulations have been set up to protect you as a consumer. Obtaining credit for a loan or purchase should be a fair, unbiased process. Your private information will not be divulged, and your credit is protected from the average Joe. Only companies with legitimate reason for requesting your credit history are privy to the information.

f you are interested in hearing more about your credit rights, you can review the FACT Act or the FCRA. This will explain all the provisions protecting consumers.