As mandated by the Federal Law, you’re entitled to get a free annual credit report from three government-sanctioned Credit Bureaus –Equifax, Transunion, and Experian. Under the law, you have the rights to request a free credit report once a year, and if you have done so, you will have the statement FACTAct Free Disclosure on your credit report.
Some mistake the mark in their credit report for a person to the point they put the search term “who is Factact free disclosure” in the search engine. I know some folks did that as I could track the search inquiries that bring visitors to this site. No personal or sensitive information the tracking system reveals anyway. The term is a file disclosure when you, for whatever reason, check your credit report with the consumer reporting agency.
Now back to the main topic…
What is FACT ACT Free Disclosure
FACT ACT stands for Fair and Accurate Credit Transactions Act, the Federal law enacted during President Bush term back in 2003. The bill was passed to amend the FRCA Act that has been in place for over three decades.
What is the difference between FACT ACT and the FRCA?
Aside from the same rights given by the FCRA Act namely every citizen has the right to obtain a free annual credit report from the consumer credit reporting agency. The FACT Act provides additional provisions to make sure all Americans get more accurate information in their credit reports not outlined in the previous law. The Federal law also set forth provisions designed to mitigate the risks associated with fraudulent activities such as identity theft and other actions that harm your creditworthiness. Under the new law, you have the rights to put the fraudulent alert in your credit file. The fraud alert is of paramount importance given the many identity hacks affecting many Americans in recent years. As we all know identity theft is one the major causes of bad credit which can bring about devastating effects on your financial records.
How Does Factact Free Disclosure Inquiry Affect Your Credit Score
FACT ACT entitles you to get your credit report from consumer reporting bureaus. The disclosure constitutes soft inquiries and consequently will not harm your credit score.
Can You Ask Fact Act Free Annual Disclosure Report from All The Three Credit Bureaus?
The answer is YES, in fact, it is a common practice, you can request a free credit report from each of three credit bureaus once a year, Many individuals get a copy of their credit report from each of the credit reporting agencies on different month during the year to monitor their credit report regularly.
Keep in mind there are no other institutions mandated by the government that can provide you with a free credit report aside from the three credit reporting agencies: -Equifax, Transunion, and Experian. You can request your free credit report online by visiting annualcreditreport.com, a central source, a government-sanctioned website based in Atlanta, GA where you can ask forms for your credit report online. The site is maintained jointly by the above consumer credit bureaus.
To maintain your creditworthiness and to prevent a potential identity theft / fraudulent activities you need to check your credit reports more frequently. In this case, you may want to purchase an additional credit report.
In a Nutshell
The FACTACT Free Disclosure that appears on your credit report constitutes soft inquiries (also known as the account review inquiries) when you request a free credit report from one of the three major credit collection agencies. The inquiry will not affect your credit score. On a side note, the inquiry section can only be viewed by you and cannot be accessed by your creditors/ lenders.