What does FACT Act guarantee regarding credit reports?

• A. Consumers are entitled to free credit scores every year.
• B. Consumers may request a free annual credit report once every two years.
• C. Consumers are charged a fee for annual credit reports.
• D. Consumers are entitled to free annual credit reports.

Answer: (D)

The main idea here is that FACT Act ensures consumers can obtain free annual credit reports from the major credit bureaus. This provision is designed to help people monitor their credit for errors or signs of identity theft, making it easier to catch and address issues early.

Under this act, you are entitled to one free credit report per year from each of the three major bureaus, and you can request them through the official site (annualcreditreport.com). This right to free reports is about the reports themselves, not about obtaining free credit scores; scores are separate and not automatically included or required to be free by the act.

The option stating you must pay a fee is incorrect, and the option suggesting you get a free report only once every two years is incorrect because the guarantee is on an annual basis. The option about free annual credit scores is also incorrect because the act specifically covers credit reports, not scores. Therefore, the correct understanding is that consumers are entitled to free annual credit reports.