Fair Credit Reporting Act (FCRA) was written and passed to ensure accurate credit reporting of individuals’ personal information. It establishes rights to maximum accurate reports and procedures to correct inaccurate information on one’s credit report. This law affects both credit reporting agencies and credit furnishers (ie banks, loan companies, and credit unions). An individual has a right to examine his credit report annually for free at annualcreditreport.com. Credit is merely a person’s reputation for the manner to which he conducts his business. Credit reports not only affect your ability to borrow money but also affect background checks, job applications and criminal background checks. Credit reporting errors occur when people have similar names, similar social security names and other similar personal information that can be mixed together. Also, your credit can be affect when companies pull your credit information without your consent. This is prohibited by the FCRA. The FCRA was enacted to ensure the best possible credit reporting for individuals and a systemic way to correct the problem.