Millions of Credit Reports Have Errors

As many as 42 million Americans may have mistakes on their credit scores according to the Federal Trade Commission.  This news is rather alarming because, according to the President of Consumer Education at SmartCredit.com, John Ulzheimer, “Errors in credit reports can cost you a loan, a compcreditcard3 Millions of Credit Reports Have Errors etitive interest rate, a job, security clearance and insurance.”

Most of these reports, however, are not large enough to impact a consumers ability to get credit.  Only 2.2% of the errors are great enough to lead to consumers having to pay a higher price for credit than they deserve.  While this rate my seem small, it still means that of the 200 million credit reports that the three major credit bureaus process, about 10 million of them have major errors.

To avoid being deemed a higher risk than you actually are, it is important to look at your credit report to ensure that everything is correct.  Only 1 in 5 consumers actually check their credit report according to a study done by the Consumer Protection Bureau.

Check your credit reports, everyone! It may mean the difference in the price you pay for a loan.

To read the full article, visit http://money.cnn.com/2013/02/11/pf/credit-report-errors/index.html?iid=SF_PF_River.

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About Ryan Gillis

I am currently a Marketing Intern for the Council of Better Business Bureaus in Arlington,Va. Originally from New Hampshire, I am a student at George Washington University in Washington D.C. My hobbies include: golfing, skiing, keeping up with Boston sports teams, and reading about history.