Credit Report Errors are dangerous. They’ll makes you realize how important checking your credit and correcting a credit report error will be to your financial future.
The credit report errors statistics below will probably frighten you.l
- Statistics show that 70% of credit reports contain serious errors that might cause consumers to be denied credit cards, car loans and even mortgages.
- Altogether, 79% of those credit reports surveyed contained either serious errors or other mistakes of some kind
- 54% of these credit reports contained personal demographic information that was misspelled, long-outdated, belonged to a stranger, or was otherwise incorrect
- 22% of the credit reports listed the same mortgage or loan twice
- 8% of the credit reports were missing major credit, loan, mortgage, or other consumer accounts that demonstrate the creditworthiness of the consumer
- 30% of the credit reports contained credit accounts that had been closed by the consumer but remained listed as open.
- An estimated 25% of the US adult population (about 50 million individuals) lacks enough traditional credit data to generate a FICO score.
Having credit report errors can cost you a job, getting a mortgage or obtaining an auto loan.
Not only that, but this same incorrect information might raise the amount you have to pay for utilities, mortgage, a car loan or auto insurance.
So you would think all of these mistakes would be a big deal to the “credit bureaus” and they would want to do something about it, right?
Unfortunately it would cost the CRA (See Credit Acronyms) more money to hire more of us humans to actually do the work. Imagine that… Actually hiring more of us to do a real day’s worth of work. But their profit margin is too important to their board of directors and stock holders.
INSTEAD, they use a machine and special software that scans your documents and helps them to avoid having to hire people to actually look at the letters. We’ll talk more about that special software later, but what you need to know is that these computers make tons of mistakes and if you don’t believe it, look again at the statistics we just mentioned.
So these “credit bureaus” would prefer to make more mistakes, than to have to pay the little extra money it would cost to ensure Americans don’t have the credit report errors on their reports.
Does that aggravate you?
Cause it really bothers the heck out of me, even now after being in this business as long as I have.
The best thing we can do as educated Americans is checking our credit regularly, even when we don’t plan to get loans or use our credit. Credit report errors are more common than most people realize.
I hope these stats scare enough people to look closely at their reports for their credit report errors.
Also make sure you know How To Read Credit Report
And after you know that you will what to understand the credit laws that protect consumers like you and me
So, that’s it for now. Until next time, always be looking out for credit report errors and keep that credit score up for the lifestyle you deserve!