How Credit Report Errors Can Cost You
A total of 79% of credit reports contain errors or inaccuracies of some sort, says a study by the U.S. Public Interest Research Group, a non-profit consumer and public issues watchdog organization. The survey, which was conducted in 30 states, also revealed that:
- 54% of the reports contained personal or demographic information that was outdated, misspelled or belong to someone else.
- 22% listed the same loan or mortgage twice.
- 30% included credit accounts that had been closed for a while but were still reported as open.
- 25% had serious errors, like false delinquencies and accounts.
Inaccuracies of this sort can dramatically affect your credit score, which will make you seem like a higher risk when you request financing or credit. The result could be credit denial or much higher interest rates, such as if you decide to finance a new auto.
After you obtain a free copy of your credit report, here are two ways you can correct these costly mistakes:
1 – Using a service like Lexington Law Firm to straighten the information out with the credit bureaus.
2 – Researching and disputing the inaccurate information on your own by calling and writing to the credit bureaus.
If you choose the second, keep in mind that there are 3 major credit reporting agencies and lenders can look at any or all of them. You can request credit reports from each bureau, or receive an easy-to-read consolidated 3-in-1 report, including your FICO Score, from online services like CreditReporting.com. Although you are entitled by law to a copy of your credit report for free, you may be charged to obtain your credit score.
Copyright 2012 BuyingAdvice.com, INC. All rights reserved. This material may not be published, rewritten, or redistributed.
