Which statement about credit inquiries and the consumer's credit report is accurate under the FACT Act?

• A. If the number of inquiries affects the score, this must be reported to the consumer on the credit report
• B. Inquiries never affect the score
• C. The number of inquiries is not disclosed
• D. The report hides inquiry counts

Answer: (A)

When a consumer’s credit report is prepared under the FACT Act, the credit inquiries that have been made are visible to the consumer, and the report shows who made the inquiry and when. If the number of inquiries has an effect on the credit score, that impact is reflected in what the consumer sees on the report. In practice, this means the report provides the count of inquiries and any associated scoring impact so the consumer understands how those checks may be affecting their credit.

Inquiries can affect the score when they are hard pulls made in connection with a credit application, so the idea that inquiry counts are disclosed because they can influence the score is the correct concept. The other statements are not accurate because inquiries can and do affect scoring in some cases, and the report does disclose inquiry counts rather than hiding them.