What does the "60-day rule" allow consumers to do?

The "60-day rule" allows consumers to request a free credit report after a hard inquiry. Under the Fair Credit Reporting Act (FCRA), consumers are entitled to a free copy of their credit report if they request it within 60 days of a hard inquiry that negatively impacts their credit score. This provision is designed to help consumers monitor their credit history and detect any inaccuracies or fraud that may arise from recent inquiries.

This understanding influences how consumers manage their credit health effectively, encouraging them to take action quickly if they notice changes after applying for credit. Knowing that they can obtain a free report allows consumers to stay informed and proactive about their credit situations.