 TITLE: Understanding the Fair Credit Reporting Act CONTENT: What Is the Purpose of the Fair Credit Reporting Act?\n-----------------------------------------------------\nPassed in 1970, the FCRA helps consumers understand what actions they can take in regard to the information in their credit reports. Information is being gathered about consumers all the time: In addition to the three major consumer credit bureaus (Experian, TransUnion and Equifax), there are other organizations that may collect and use your information. For example, banks and credit unions may use information from your credit history to determine whether to approve you for a loan.\nWhy does it matter how information about your credit is used? Whenever you apply for a credit card, a car loan, a mortgage loan or any other form of credit, the issuing company checks your credit history to assess your creditworthiness. The terms you are offered for credit (such as a loan) may be based in part on your credit score and information in your credit report.\nYour credit history affects more than just your ability to get loans or the annual percentage rate (APR) on your credit cards. For instance, prospective landlords could check your credit report to see how creditworthy you are when deciding whether they can trust you to pay your rent on time.\nIn some states, employers may check your credit report for hiring purposes. Also, depending on the state, insurance companies may check your credit to determine whether to offer you coverage. END