Which of the following is a purpose of the Fair Credit Reporting Act?

The purpose of the Fair Credit Reporting Act (FCRA) is primarily to promote the accuracy of consumer credit information. This is crucial because accurate credit reporting is essential for consumers to secure credit at fair terms and rates. The FCRA mandates that consumer reporting agencies must ensure the information they provide is accurate and up-to-date. It also gives consumers the right to access their credit reports and to dispute any inaccuracies, thereby fostering transparency and accountability within the credit reporting system.

The act plays a significant role in protecting consumers' rights regarding how their credit information is collected, shared, and utilized. By promoting accuracy, it helps to prevent negative financial consequences that can arise from incorrect information, such as denial of credit or higher interest rates. The emphasis on accuracy aligns with the broader goals of consumer protection and financial stability within the marketplace.