Monday, September 23, 2013

Credit Report Errors

A February study from the Federal Trade Commission says that 20% of Americans have errors on at least one of their three credit reports (from Experian, Transunion and Equifax ) and that 5% had mistakes that "could led to them paying more for products such as auto loans and insurance."

Here’s a snapshot of relevant points from the FTC report:

  • 25% of U.S. consumers found errors on their credit reports that could crimp their credit health.
  • 20% of consumers had an error on their credit report that was corrected by the credit agency after the mistake was disputed.
  • 80% of consumers who filed disputes had the mistake “modified” by the credit report agency.
  • 5% of consumers had a maximum score change of more than 25 points, and only one in 250 consumers had a maximum score change of more than 100 points.
Credit reports are free through, FTC officials note — and contact the credit bureau right away to fix a mistake. That’s especially important before buying a home, car or applying for a credit card or insurance policy.