What does the Fair and Accurate Credit Transactions Act (FACT Act) allow for individuals?

The correct answer is based on the provisions set forth by the Fair and Accurate Credit Transactions Act (FACT Act), which enables individuals to access their credit reports. Specifically, the FACT Act entitles consumers to obtain one free credit report annually from each of the three major credit reporting agencies (Equifax, Experian, and TransUnion). This access to credit reports allows individuals to review their credit information for accuracy and take necessary actions if they find any discrepancies.

By receiving this free credit report, consumers can effectively monitor their credit health, identify any fraudulent activity, and understand the factors affecting their credit scores, making it an essential right in personal financial management.

While disputing credit report errors is indeed a provision that supports consumers, it is not the primary feature highlighted by the FACT Act in the context of providing access to credit reports. Additionally, the provisions regarding the number of free reports do not extend to two free reports annually nor do they automatically correlate to lower interest rates on loans. The act specifically outlines the single annual report from each agency, which is what makes this answer the most accurate reflection of the law's intent.