Are Credit Report Mistakes Costing You?
Fast Fact: A new report reveals that whopping 1 in 5 credit reports contain mistakes. Fortunately new laws require credit companies to promptly fix them and make it super easy for you to make sure they do!
WHY IT MATTERS
“These are eye opening numbers for American consumers. The results of this first of its kind study make it clear that consumers should check their credit reports regularly. If they don’t they are potentially putting their pocketbooks at risk.”
– Howard Shelanski, Director of the FTC’s Bureau of Economics
Your credit score comes from several pieces of information about you including whether you make payments on time and how much you spend. Nowadays just about everyone, from landlords to lenders, judges you based on your credit score. In part because credit companies, like banks, have been so inundated during the past few years, 1 in 5 of us now have mistakes in our credit reports.
If you happen to be that 1 in 5, mistakes made by the credit company may be costing you hard earned money. For example, the difference between a 698 and a 700 credit score on a $150,000 mortgage will cost you $10,000.00 in extra interest.
Because your credit score is so important to your wallet and prosperity, Congress has passed the Credit Accountability, Responsibility Disclosure Act (CARD). Now you have the legal right to get your credit report FOR FREE at www.annualcreditreport.com. And, when you report a mistake, the credit companies are legally required to promptly fix it. Also ask about “Rapid Re-Scoring” to have mistakes fixed in a matter of days. And practice reviewing your credit report at the same time you file your tax returns as a simple way to remind yourself to do it.
According to the FTC report, by taking these simple steps, 1 in 20 consumers had a credit score change as high 25 points and 1 in 250 had a credit score change as high as over 100 points!
Read the full FTC report.
- Keeping Credit Bureaus in Check – Finally, the companies that have been keeping track of how we handle our credit will be watched closely by a single federal agency.
- Can’t Fix an Error in Your Credit Report? Call the Consumer Financial Protection Bureau – If there’s something’s strange in your credit report, who you gonna call?
- How to Fix a Credit-Report Error—Before It Bites Back – What you don’t know might hurt you.
- In Settlement with FTC, Debt Collectors Agree to Stop Deceiving Consumers and Pay Nearly $800,000