The fair and accurate credit transactions act (facta) provides mechanism for the legal citizens of USA to receive three free credit reports in a period of 12 months. Complying with facta, the three federal credit reporting agencies created a joint venture called the central source llc, leading to the creation of www.annualcreditreport.com to enable customers to procure such reports.
Some fun facts and figures:
- A credit reporting company is able to report accurate negative information up to 7 years and information regarding bankruptcy up to a staggering 10 years.
- The annual credit report free of cost, apart from the customer requesting information, is also accessible to the creditors, employers, insurers and such related personnel.
- You know about Equifax, Experian and Transunion as the three credit reporting agencies/companies that are required to participate in the free credit’s official website, but other non-participating companies also operate, such as innovis, prbc and Chex systems.
Some concerns in the free credit report annual mechanism:
The federal trade commission has officially mandated only www.annualcreditreport.com as the sole and authorized provider of the free credit reports. However, many imposter websites have come up in the internet, confusing customers who are unaware of the federal functionalities. Websites with similar domain names and deliberate misspellings are causing havoc in this industry.
Studies have found that more than 250 similar named websites had a run all over the online portals, half of which had unintended destinations, surfacing into non-linked sites and pornographic pages. A website named www.freecreditscore.com has officially been declared as an imposter website.
The credit scores in the USA have been criticized on certain levels as well, such as being able to be gamed pretty easily, and not protecting risks altogether.
So, guys if there are pros, cons are ought to surface. It is the strategies, tactics and decisions, which matter the most. Stay creditworthy people. Cheers.