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3 Things Every American Should Know about the Fair Credit Reporting Act

If you are like most people, you probably don’t spend a lot of time thinking about your credit score until you need to secure financing or you’re interested in taking out a loan. After all, in the hustle and bustle of everyday life, who has time to worry about their credit score? This means that many consumers are unaware that their credit score may be erroneous until it’s too late and they need to apply for a new credit card or mortgage only to be denied.

 

Thankfully, the Fair Credit Reporting Act (FCRA) was implemented to help keep credit reporters honest when it comes to your finances. If you are considering debt counseling in Philadelphia, you need to make sure that you understand the specifics of the FCRA. Knowing your rights can help protect you against unfair and predatory credit practices.

 

  • It’s your responsibility to monitor your credit. Regardless of the fact that 99% of Americans don’t think about their credit score on a daily basis, the FCRA still asserts that it is the individual’s responsibility to search their report for inaccuracies. This allows many credit issuers the opportunity to leave items uncorrected, further damaging your credit score.

 

  • Credit reports often contain errors that harm your credit. A 2015 study released by the Federal Trade Commission found that a whopping 23% of credit reports include at least one error harming their credit score. You have about a 1-in-4 chance of being a victim.

 

  • Bankruptcy errors can ruin your chance at a fresh financial start. Filing Chapter 7 bankruptcy can provide a totally clean slate from debts. If you meet the requirements of Chapter 7 bankruptcy, you won’t have to pay a dime after filing. However, errors in credit reporting (including collection items and trade lines being excluded from the bankruptcy, a reaffirmed debt being listed as discharged, or the inclusion of a spouse on an individual bankruptcy) can keep you from getting the fresh start you need. Using the FCRA (and a company specializing in credit card counseling services in Philadelphia like Quality Credit Repair), you can seek out and correct these issues for the best possible shot at financial freedom from debt.

 

So, if you think there is an erroneous item on your credit report, what should you do? The first step is to call Quality Credit Repair. We can help you determine the next best steps to take in your case. Give us a call today at 888-399-3898 to get started!