Credit Reports: Not As Accurate As You Might Think

Your credit score wields a lot of influence over your life. It can be the make-or-break determinate when buying a car, securing a mortgage, or accessing a line of credit for a new business venture. We’d like to think the logic behind our score is pretty bulletproof, but that may not be the case.

In a study conducted in 2021, Consumer Reports asked volunteers to inspect their credit reports for errors in personal information and account information. A whopping 34% of participants found at least one error. In a similar study conducted in 2012, the Federal Trade Commission found errors in 25% of the reports inspected.

Types of Errors

While errors in personal information may seem innocuous – they don’t have much effect on the score itself – they can make it difficult for a person to access their report. A mistake in a person’s social security number, for instance, can create confusion proving who the report belongs to.

Errors in account information, on the other hand, can really pack a punch. A relatively common occurrence is the mixing of report files by credit reporting agencies. If you’re unlucky enough to get mixed up with someone having a questionable credit history, your score could seriously suffer.

Fixing Mistakes

Companies like Equifax, Experian, and TransUnion believe themselves to be nearly perfect in their reporting. In fact, their response to the Consumer Data study findings claimed the study was “completely false and misleading;” the companies claim to have a 98% accuracy rating. It should be no surprise, then, that getting an error corrected requires a lot of work.

If you are a victim of credit reporting errors, you should begin your letter-writing campaign to have the errors corrected. For legal support, you may wish to contact a credit report error lawyer who can assist you with the challenges that may arise.