How can credit bureaus collect information about me?
The information credit bureaus collect is very personal, and some people may question why it’s legal to seek out, store and sell all that data in the first place. The Fair Credit Reporting Act (FCRA) details specific limitations on how credit bureaus can operate and to whom they can provide your information. The law states that only entities with a “valid need” may access your credit report; this includes creditors, lenders and landlords. You must give written permission for employers to access your credit report. Credit bureaus usually obtain information from the financial institutions with which you work. For example, your credit card issuer may update the bureaus when you take out a new card or miss a payment. Some public court records are also a source for this information.
Chapter 1: Credit bureaus
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