What is the Fair Credit Reporting Act (FCRA)

A credit report with a score of 780 reading approved

There are a lot of acronyms in the world of business and especially inside mortgages. The FCRA is one of the more important pieces of regulation in the mortgage world to protect the consumer. When you apply for a mortgage the first thing a lender will want to do is pull your credit report to determine your overall qualifying credit score and what your monthly credit card and loan payments look like.

The FCRA protects you on how lenders view your information at a federal level and determines how long information is kept and how it is shared with others. The FCRA was passed in 1970 and helps to ensure accuracy and privacy of personal information inside of the credit reporting agencies. It also provides consumers the right to understand what is in their file as well. Every consumer is entitled to one free credit report every year to provide this visibility.

Credit information can only be retained for typically 7 years and then must drop off or be removed. You as a consumer have many rights under FCRA and you can use this link to see them.


Also, FCRA allows you to opt out of prescreened credit offers by clicking on the following link.


You should know and be up to date on your credit as it is critical in many aspects of your life. When looking for a mortgage, consult a mortgage professional like the trusted advisors at Hall Financial.