Scary Facts About Credit Reports

Most of us don’t give much thought to your credit score in our day-to-day lives. But when the time comes for a major purchase like a house or a car, the information in your credit report is crucial. People are often surprised at how much incorrect information can show up in their credit report when they finally take the time to look at it. It’s important to monitor your credit report so that it can look its best when it really matters!scary facts about your credit report

There are some problems that commonly arise in credit reports, and knowing about them will help you to avoid them. A look at some statistics is a good way to get a picture of how credit reports are affecting people just like you.

Understanding the importance of our credit score

  • According to Student Monitor research, 74% of college students do not know their credit score.
  • The American Bankers Association found that 44% of adults mistakenly think that the credit report and credit score are the same thing.
  • More than half of U.S. adults had never reviewed their credit reports, according to a 2014 survey by Consumer Reports.
  • Debt collectors are most frequently responsible for errors. According to the Consumer Financial Protection Bureau, 40% of disputes filed with credit reporting companies are related to errors made by debt collectors.
  • The credit score you see may not be the same as the ones your creditors see. According to the CFPB, about 25% of the time the score supplied to a creditor will differ from the one on your credit report enough to place you in a different credit-quality category.
  • The Federal Trade Commission reports that one in four consumer credit reports contain errors. These can be related to your identity (the report gets your name wrong), details about accounts, or including accounts that you did not open or authorize.
  • It can be difficult to correct credit report errors. The Consumer Reports survey found that more than half of the consumers who attempted to fix problems with their reports ran into significant challenges.How your credit score is determines

Your credit score doesn’t just affect loans. While a low credit score can stop you from getting a loan, it can also cause you to pay a higher rate of interest on money that you do borrow. It affects insurance premiums, and even your likelihood of being hired for a job. Unfortunately, credit agencies are not able to ensure that your report is error-free, so it’s critical that YOU keep up with this information yourself and be proactive about protecting your credit.

Start by ordering your free credit report annually (maybe each year on your birthday?) at a site such as https://www.freecreditreport.com. Be sure to get the reports from all 3 bureaus: Experian, Transunion, and Equifax, since one may have mistakes that others don’t.

For more information on this topic:
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Ryan@RyanYourRealtor.com
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3 Responses to “Scary Facts About Credit Reports”

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