When was the last time you checked your credit report? You may want to check it again after hearing this.
Complaints about credit report errors have more than doubled since 2021. Amy Davis explains why and what you can do about it.
Your credit report and the credit score are used to determine just about everything. Whether you get approved for an apartment, a car loan or even insurance. If there is something negative on your report that isn’t accurate that could mean higher interest rates or not getting a loan at all.
TransUnion, Experian and Equifax are the three credit bureaus that compile information about your financial history. (You can get a free credit report each week.)
Consumer Report’s Ryan Reynolds says incorrect information on credit reports was the number one complaint to the Consumer Financial Protection Bureau last year.
What can I do if I find a mistake on credit report?
If you find a mistake on your report, you need to send documentation to each bureau by certified mail showing proof that the information you found is inaccurate. Even then many people say the bureaus are not removing the errors.
Reynolds said it’s partly because the credit bureaus are using third party data furnishing companies to get information.
“And part of its automation, when you’re sending in your supporting materials, to the credit bureaus, just, you know, showing that you don’t have this, that anymore, they’ll send, a little short that they’ll assign it, like, some little, short code, that will get sent to the data furnishers. A lot of times they’re not even seeing the supporting documents that, the consumer is sending in. And then, they’re just automatically, denied,” said Reynolds.
Get a statement added to your credit report
If you are still denied after sending proof of an error, you can have a statement attached your credit report so someone checking it will see your explanation of the part you are contesting.
“You can add a statement. To your credit report that can get attached with any of the, the trade lines or the accounts that you find in, in a credit report. So, if you’re disputing something and it’s not going your way, you can have a statement attached, and the credit reporting agencies are required to put it in. So that might, not want to prove your credit score. And it might, but it might make it more likely if the lender is actually looking for your account. They will see that statement and kind of, see the explanation that you give in there. So, it might be more likely where you could get a loan or anything like that, it’s, it won’t be taken into account with, like, calculating your credit score or something,” Reynolds explains.
Reynolds says this could give a reasonable explanation to someone like a landlord who may be looking at the credit report.
You should also file a complaint with the Consumer Financial Protection Bureau.
Reynolds also talks about medical debt on your credit report and when you might want to put a freeze on your account.
Hear more on today’s episode of Ask Amy at 11am on KPRC2 +. Watch ‘Ask Amy’ on KPRC 2+ (click2houston.com)
RELATED: What to look for on your own credit report
Reynolds also talks about medical debt on your credit report and when you might want to put a freeze on your account.
Hear more on today’s episode of Ask Amy at 11am on KPRC2 +.
https://www.click2houston.com/news/investigates/2021/09/23/ask-amy-what-to-look-for-on-your-credit-report-canceling-subscription-services/
https://www.click2houston.com/news/local/2022/08/16/watch-ask-amy-podcast-on-kprc-2/