| U.S Federal law, the Fair Credit Reporting Act (FRCA); | | | | protects everyone. As you probably already know, in |
| controls the collection, distribution, and the use of | | | | order to apply for a mortgage loan, your credit reports |
| customer credit information. The credit card reporting | | | | will be attained and it is important that all the |
| companies under the law, have numerous | | | | information on it is correct. The lenders will base their |
| responsibilities. Given that credit reports are used for | | | | decision to grant you the loan on the report. |
| the assessment by banks and other institutions, it is | | | | Here is how the act can protect home buyers |
| important that the reports are as accurate as possible. | | | | however; you should remember that laws may vary |
| The credit reporting company has the duty to provide | | | | state to state. |
| consumers with the information just as it is in their | | | | How the home buyer is protected |
| databases. The information can be easily confirmed | | | | 1. Every year, you have the right to attain a free credit |
| whenever they wish and if any inconsistency noticed; it | | | | report from the different credit bureaus. Obtaining |
| can be instantly brought to the attention of the | | | | annual reports are necessary for you to watch out for |
| company. If the information is incorrect, the mistakes | | | | the reports of the lenders. This will enable you, as well, |
| must be made right and the rectified report given to | | | | to check for any uncharacteristic transactions. |
| the bank. The whole purpose of the law makes sure | | | | 2. You have the right to dispute any of the information |
| that the entire process is carried out in a way that is | | | | that is on the credit report. This is one of the important |
| fair and is unbiased, in reports created by agencies. | | | | reasons why you should keep records of purchases |
| The law makes certain that the reports, which are | | | | and any other transaction because it will be needed to |
| provided to the credit bureaus, are correct. However | | | | dispute transactions you feel are incorrect. You can |
| there instances wherein credit reports are not | | | | contact the credit bureaus through a letter with the |
| accurate, so make sure you check it thoroughly. For | | | | attached evidence, so your records can be corrected. |
| example, your report could show that your payments | | | | 3. It is advised that you check and correct credit |
| are late when in actuality you are current with them all. | | | | reports before you apply for a mortgage loan. |
| This is an important reason for you to routinely check | | | | 4. You can ask for an explanation if you have been |
| your reports. If you find that there are mistakes and | | | | denied for a mortgage loan. |
| irregularities, you have rights to report and have them | | | | 5. For anyone or any lending company to attain a copy |
| cleared. | | | | of your credit report, they must have your permission. |
| So how does this act aid in protecting the home | | | | This ensures that your credit document is being used |
| buyer? There are various ways in which this law | | | | properly. |