The full explanation
The businesses that buy those reports use them to decide whether to give you credit, a job, a rental home or insurance. There are also specialty agencies, for example for rental history or check writing. The federal Fair Credit Reporting Act (FCRA) gives you the right to request a copy of your report and to dispute information that is wrong.
An example
Before applying for a mortgage, Ricardo requests his free report from each of the three nationwide agencies. One of them lists an address that is not his, and he disputes it with that agency.
You will see it in…
- AnnualCreditReport.com, where you request your free reports
- Letters from the bureaus when you dispute an item
- Adverse action notices, which name the agency whose report was used
