According to the FCRA, an adverse action is what?

An adverse action, as defined by the Fair Credit Reporting Act (FCRA), encompasses various outcomes that negatively impact an individual's credit situation. The correct answer encompasses all aspects of adverse actions in relation to credit.

First, a failure to approve credit signifies an instance where a credit application is not successful, which can be a significant detriment to an individual seeking credit.

Second, a denial of credit based on information within a credit report specifically indicates that negative information influenced the decision, highlighting the report's role in assessing creditworthiness.

Third, a negative impact on credit terms refers to situations where, although credit may be extended, the terms—such as higher interest rates or less favorable repayment conditions—are adversely affected.

Since each of these components contributes to the overall understanding of what constitutes an adverse action in the context of credit reporting, the comprehensive choice that includes all of them accurately reflects the FCRA's stipulations regarding adverse actions.