Bill, Bureaus and Acts—little known Credit Score Facts

  • Equifax, TransUnion, and Experian are the three major credit bureaus. 

Each bureau tracks information as to how consumers use their credit. For that reason, they individually have a database where they maintain consumers FICO credit scores. Having then three credit reports that usually vary, often becomes significant especially when consumers check their credits regularly.

credit-score-facts

  • When talking about credit scores, two Acts are typically involved. The Fair and Accurate Credit Transaction Act (FACT Act) and the Equal Credit Opportunity Act (ECOA).

The FACT Act—this usually entitles consumers an annual free copy of your credit report from the three major bureaus. But this does not actually include consumer’s FICO credit score. In order to get a free copy, credit monitoring services offers free trials.

  • The Equal Credit Opportunity Act (ECOA)—this prohibits lenders from considering factors like gender, race, nationality, and marital status when issuing credit. This ensures a fair credit scoring to people with little credit history. This Act is very vital since scoring plays as a consistent measure of repayment for consumers who hold credit report and history. Thus, guaranteeing a fair transaction and fees from both minority and non-minority applicants.
  • Disclosing credit scores to applicants was required to all lenders under the Doss-Frank financial Reform Bill. It is named after U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank because of their significant involvement in the act’s creation and passage. This Act is believed to lower risk in various parts of the U.S. financial system.

Little Known Credit Score facts

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

4 Comments
  1. Thanks for the info. I figured there would be some catch to free credit reports. I knew the whole thing was meant to just get people in the door, but hey, I still think it’s a good thing to do by keeping track of my credit info. It’s better safe than sorry after all.

  2. I noticed that my FICO is never included when I request my credit report every year. I questioned whether or not it shouldv’e been included.. Thanks for clearing that up.

    • Glad we can help! Love your blog! It gave me some good craft ideas to do with the kids!

      Thanks for visiting and feel free to post if you have any other questions. I’ll write an article just for you!

      Melanie

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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