Annualcreditreport.com
Encyclopedia
Annualcreditreport.com is a website
jointly operated by the three major U.S. credit reporting agencies, Equifax
, Experian
, and TransUnion
. The site was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act
(FACTA) to provide a mechanism for American consumer
s to receive a free annual credit report.
(FCRA), was a requirement that each of the three credit reporting agencies provide, upon request, a free credit report every twelve months to every consumer. The goal was to allow consumers a way to ensure their credit information is correct and to guard against identity theft
.
Accordingly, the three major credit reporting agencies, Equifax
, Experian
, and TransUnion
created the joint venture company Central Source LLC to oversee their compliance with FACTA. Central Source then set up a toll free telephone number, a mailing address and a central website, annualcreditreport.com, to process consumer requests. Access to the free report was initially rolled out in stages, based on the consumer’s state of residence. By the end of 2005 all U.S. consumers could use these services to obtain a credit report.
. The user is then sent to the website of the individual credit reporting agency they select, where they are asked additional security question
s to confirm their identity before getting their report. A consumer can request reports from all three agencies at the same time or stagger the requests throughout the twelve month period as a way to self-monitor their credit data. In order to obtain a free credit report, users are not required to give a credit card number but establishing an account is required by some of the agencies. Any inaccuracies or signs of identity theft may be dealt with using the mechanisms provided for under the FCRA and FACTA.
Over a two year period from December 2004 to December 2006, 52 million credit reports were issued to consumers through annualcreditreport.com. According to the Consumer Data Industry Association, fewer than 2 percent of the reports reviewed by a consumer resulted in a dispute in which data was deleted from the report.
Credit score
s are not included in free credit reports obtained from annualcreditreport.com. For a fee, each of the credit bureaus offer credit scores as an add-on feature of the report.
is the only federally mandated and authorized source for obtaining a free credit report. The Federal Trade Commission
cautions consumers to be aware of “impostor” websites that have similar names or are deliberate misspellings of the real name.
In order to investigate this concern, the consumer group World Privacy Forum has made two studies regarding annualcreditreport.com. Their July 2005 study found that there were 233 domains with names very similar to annualcreditreport.com, of which 112 routed users to a variety of unintended destinations, including for-fee services, “link farm
s” and pornographic sites. The report concluded that the credit reporting agencies and the Federal Trade Commission needed to do more to rein in and shut down impostor sites.
Website
A website, also written as Web site, web site, or simply site, is a collection of related web pages containing images, videos or other digital assets. A website is hosted on at least one web server, accessible via a network such as the Internet or a private local area network through an Internet...
jointly operated by the three major U.S. credit reporting agencies, Equifax
Equifax
Equifax Inc. is a consumer credit reporting agency in the United States, considered one of the three largest American credit agencies along with Experian and TransUnion. Founded in 1899, Equifax is the oldest of the three agencies and gathers and maintains information on over 400 million credit...
, Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
, and TransUnion
TransUnion
TransUnion is the third largest credit bureau in the United States, which offers credit-related information to potential creditors. Like major competitors Equifax and Experian, TransUnion markets credit reports directly to consumers.- History :...
. The site was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act
Fair and Accurate Credit Transactions Act
The Fair and Accurate Credit Transactions Act of 2003 is a United States federal law, passed by the United States Congress on November 22, 2003, and signed by President George W. Bush on December 4, 2003, as an amendment to the Fair Credit Reporting Act...
(FACTA) to provide a mechanism for American consumer
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s to receive a free annual credit report.
Background
One of the provisions of FACTA, passed in 2003 as an amendment to the Fair Credit Reporting ActFair Credit Reporting Act
The Fair Credit Reporting Act is a United States federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. Along with the Fair Debt Collection Practices Act , it forms the base of consumer credit rights in the United States...
(FCRA), was a requirement that each of the three credit reporting agencies provide, upon request, a free credit report every twelve months to every consumer. The goal was to allow consumers a way to ensure their credit information is correct and to guard against identity theft
Identity theft
Identity theft is a form of stealing another person's identity in which someone pretends to be someone else by assuming that person's identity, typically in order to access resources or obtain credit and other benefits in that person's name...
.
Accordingly, the three major credit reporting agencies, Equifax
Equifax
Equifax Inc. is a consumer credit reporting agency in the United States, considered one of the three largest American credit agencies along with Experian and TransUnion. Founded in 1899, Equifax is the oldest of the three agencies and gathers and maintains information on over 400 million credit...
, Experian
Experian
Experian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
, and TransUnion
TransUnion
TransUnion is the third largest credit bureau in the United States, which offers credit-related information to potential creditors. Like major competitors Equifax and Experian, TransUnion markets credit reports directly to consumers.- History :...
created the joint venture company Central Source LLC to oversee their compliance with FACTA. Central Source then set up a toll free telephone number, a mailing address and a central website, annualcreditreport.com, to process consumer requests. Access to the free report was initially rolled out in stages, based on the consumer’s state of residence. By the end of 2005 all U.S. consumers could use these services to obtain a credit report.
Companies participating
Currently these companies are required to participate in the website:- EquifaxEquifaxEquifax Inc. is a consumer credit reporting agency in the United States, considered one of the three largest American credit agencies along with Experian and TransUnion. Founded in 1899, Equifax is the oldest of the three agencies and gathers and maintains information on over 400 million credit...
- ExperianExperianExperian plc, formerly known as CCN Systems, is a global credit information group with operations in 36 countries. The company employs 15,500 people with corporate headquarters in Dublin, Ireland and operational headquarters in Nottingham, England and Costa Mesa, California, US...
- TransunionTransUnionTransUnion is the third largest credit bureau in the United States, which offers credit-related information to potential creditors. Like major competitors Equifax and Experian, TransUnion markets credit reports directly to consumers.- History :...
Use of website
Annualcreditreport.com requires users to register with the site and provide their basic identification information, such as name, address and social security numberSocial Security number
In the United States, a Social Security number is a nine-digit number issued to U.S. citizens, permanent residents, and temporary residents under section 205 of the Social Security Act, codified as . The number is issued to an individual by the Social Security Administration, an independent...
. The user is then sent to the website of the individual credit reporting agency they select, where they are asked additional security question
Security question
A security question is used as an authenticator by banks, cable companies and wireless providers as an extra security layer. They are a form of shared secret....
s to confirm their identity before getting their report. A consumer can request reports from all three agencies at the same time or stagger the requests throughout the twelve month period as a way to self-monitor their credit data. In order to obtain a free credit report, users are not required to give a credit card number but establishing an account is required by some of the agencies. Any inaccuracies or signs of identity theft may be dealt with using the mechanisms provided for under the FCRA and FACTA.
Over a two year period from December 2004 to December 2006, 52 million credit reports were issued to consumers through annualcreditreport.com. According to the Consumer Data Industry Association, fewer than 2 percent of the reports reviewed by a consumer resulted in a dispute in which data was deleted from the report.
Credit score
Credit score
A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person...
s are not included in free credit reports obtained from annualcreditreport.com. For a fee, each of the credit bureaus offer credit scores as an add-on feature of the report.
Credit inquiries affect on credit scores
Using this service does not lower the consumer's credit score, as it counts as a "soft" credit pull. However, "hard" credit pulls made by lenders directly affect the borrower's credit score.Third-party fraud attempts
Annualcreditreport.comAnnualcreditreport.com
Annualcreditreport.com is a website jointly operated by the three major U.S. credit reporting agencies, Equifax, Experian, and TransUnion. The site was created in order to comply with their obligations under the Fair and Accurate Credit Transactions Act to provide a mechanism for American...
is the only federally mandated and authorized source for obtaining a free credit report. The Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
cautions consumers to be aware of “impostor” websites that have similar names or are deliberate misspellings of the real name.
In order to investigate this concern, the consumer group World Privacy Forum has made two studies regarding annualcreditreport.com. Their July 2005 study found that there were 233 domains with names very similar to annualcreditreport.com, of which 112 routed users to a variety of unintended destinations, including for-fee services, “link farm
Link farm
On the World Wide Web, a link farm is any group of web sites that all hyperlink to every other site in the group. Although some link farms can be created by hand, most are created through automated programs and services. A link farm is a form of spamming the index of a search engine...
s” and pornographic sites. The report concluded that the credit reporting agencies and the Federal Trade Commission needed to do more to rein in and shut down impostor sites.