Certified Apartment Portfolio Supervisor (CAPS) Practice Exam - Module 1

The Fair Credit Reporting Act (FCRA) mandates that before obtaining a credit report, the individual or entity seeking the report must first receive authorization from the subject of the report. This requirement ensures that consumers have control over their personal information and are aware that their credit information may be accessed. Obtaining this authorization is a critical step in maintaining consumer privacy and trust, as it protects individuals from unauthorized access to their sensitive financial information. This process reinforces the importance of transparency in credit reporting and consumer rights.

Other options like providing a verbal notice or submitting a written application do not meet the legal requirements established by the FCRA for obtaining a credit report, hence they don't fulfill the necessary obligations. Similarly, verifying employment history is not a prerequisite for obtaining credit reports, but rather a separate process that may be involved in the overall assessment of an individual's eligibility for credit.