Credit Report Blog
Website CertifiedPrivacy Protected

Educating Yourself on Laws of Credit

By Ruth Racey
Published: Tuesday, October 6th, 2009

A responsible and cautious lender should be aware of the rights that he has. Knowing this is important for him not to fall victim to any discriminatory acts or even identity theft. Below are two of the most important decrees on credit that everyone should be aware of:

Equal Credit Opportunity Act

This states that all consumers are to be accorded with the same standards on credit regardless of their national origin, race, marital status, age, sex or their involved program for public assistance. Now, this does not mean that you will get immediate approval of a loan or credit applied for. It just implies that you have every chance to apply for a charge account just like everyone else does. The only basis that creditors will look into is your capability to pay incurred debts.

Although a lot of credit applications have questions regarding the things stated above, it is up to you to answer them. Take note that your marital status should not be in question unless the loan applied for needs your partner or spouse’s signature. This law may require for your age to be placed on applications, but this is only to ascertain if you are already of age to be given credit. In the US, this means that you have to be over 18 years of age.

Based on the law, creditors must tell applicants of the outcome of their application within a 30-day period. If an application was turned down, a written statement with all the details of the decision as well as cause for denial should be provided. An applicant’s rights should also be included in the letter.

Fair Credit Reporting Act

This law states the rights of people to view their credit reports. One great thing about this act is that it enables everyone to get a free credit report annually. Upon reviewing this charge statement, you have the right to make a dispute if you see discrepancies in it. This allows you some control over the charges credit reporting agencies may have against your accounts. If you see something wrong in your account, you can also create a 100 word response statement. This would aid in clarifying the entry that is in dispute.

Sustaining privacy and accuracy of a person’s financial details contained in a credit report is the main reason behind the act. It was passed to prevent identity theft, which has gained popularity over the years. Through this credit statement as well, you can easily find out if you have been a victim of any kind of identity theft.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.