Credit Report News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Report News, Tips & Advice « Credit Reports > Credit Report News > Federal Trade Commission Reports 5% Consumers having Errors in Credit Reports that makes them less Favorable for Loans

Federal Trade Commission Reports 5% Consumers having Errors in Credit Reports that makes them less Favorable for Loans

By Faye Mergel
Published: Monday, February 18th, 2013

The number of consumers having erroneous credit report is indeed staggering in America, which makes it apparent that consumers should regularly check their credit score, and report any erroneous entry that might have crept into the credit report, pulling down the score significantly. If American consumers don’t check their credit reports on a regular basis, they are actually pulling down their credit worthiness, making them most unfavorable for loans. Moreover, it can also make them pay higher EMIs and premium amounts for insurance or auto loans.

In addition to this, the study also found that one in every four consumers is able to identify the errors in their credit reports that might be affecting their credit scores badly. Moreover, one in every 5 consumers was having an error in one of the three major credit reports, which was corrected by the credit reporting agency once it was disputed. The study also reported that four out of every five consumers who have filed disputes regarding errors in credit report has experienced certain modifications in the report. A little more than ten consumers have also reported seeing an improvement in the credit score after the credit reporting agencies has modified the errors in their credit reports. The study further stated that one in every twenty consumers experienced a maximum change in credit score for more than 25 points, while only one among 250 consumers have a score change of more than a hundred points.

The credit report presents information about your bill payment history and finances. Hence, it is important to ensure that it is accurate. If errors are pulling down your credit score, it will not only make you unfavorable for a loan, but will also make you pay more for insurance policies or auto loans. So, if you identify an error in the credit report, work with the respective credit reporting company to fix it immediately.

No Comments »

No comments yet.

RSS feed for comments on this post.

Leave a comment

*