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Home > Banking News > Access To Free Credit Reports Now Available To Everyone On Sept. 1
Access To Free Credit Reports Now Available To Everyone On Sept. 1
All U.S. consumers will have access to a free annual credit report from each of the major national credit reporting agencies as of Sept. 1, 2005. This will allow consumers to check the accuracy and completeness of their credit files that are so vitally important in today's economy.
(PRWEB) September 9, 2005 -- Finally, on Sept. 1, 2005, all U.S. consumers will be eligible to receive a free annual credit report from each of the three major Credit Reporting Agencies.
A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of these nationwide consumer credit reporting companies to provide consumers with a free copy of their credit report, at their request, once every 12 months. The program has been implemented on a rolling schedule across the country with Sept. 1, 2005 as the deadline for full implementation. The FCRA promotes the accuracy and privacy of information in the credit report files of the nation's consumer credit reporting companies.
Why is consumer access to credit reports important?
A credit report contains information on where people live, how they pay their bills, and whether they've been sued, arrested, or filed for bankruptcy. Nationwide consumer credit reporting companies sell the information in their credit report to creditors, insurers, employers, and other businesses that use it to evaluate their applications for credit, insurance, employment, or renting a home.
Collectively, this information is used to develop their credit score which forms a basis for lending agencies to determine the loan amount and interest rate for which they can qualify. The lower their credit score, the higher the interest the lending agency will charge them and the lower the loan amount will be.
Their credit rating can also affect their car insurance rates! So, it is important that consumers know what is in their credit files and if the information is complete and accurate. Access to their free credit report will allow consumers to know about any errors and take appropriate steps to correct them.
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