The Fair Credit Reporting Act, or FCRA, is a law that ensures the fairness, privacy, and accuracy of consumer credit information. It is a federal law that shapes how credit reporting agencies may use, share, collect, and access the data in consumer reports.
The idea behind this law is to help everyday people understand what they can do about the information contained in their credit reports. This information is often used by credit unions and banks when you apply for a loan, so the reports can have a significant impact. Depending on how positive the information in your credit report is, you may be offered a lower or higher interest rate.