The Fair and Accurate Credit Transactions Act was passed in 2003 in the United States. According to this law, the citizens of America are entitled to a copy of the credit report every year. All they have to do is log on to the Annual Credit Report website. This website has been developed through the active cooperation of 3 US Credit Bureaus. They are Experian, TransUnion and Equifax. The credit report that is prepared may differ across the different agencies. TransUnion and Equifax may prepare reports on customers' court accounts and late payments. On the other hand the report the is produced by Experian may be completely different.
The preparation of the Annual Credit report may be essential in the following aspects:
- The Annual credit report basically reflects the fiscal health of an individual. Hence it is mandatory at the time of applying for a mortgage or a re-mortgage. The creditor would come to know of the credit worthiness of the person seeking mortgage loan only from his annual credit report.
- Even in the case of any type of insurance like automobile or home, the credit worthiness is judged from the annual credit report. Not only is the preparation of the annual credit report important, credit repairing should also be done at equal time intervals. It may so happen that certain debts are already paid, but such corrections are not made in the credit report. In this case the credit worthiness of the person may be hampered unnecessarily. So the Annual credit report should be updated from time to time.
