I was just reading an article in the Wall Street Journal called “How to Fix a Credit Report Error Before It Bites Back:” by Karen Blumenthal. She reported on a recent study of 1001 people who reviewed their credit reports. 262 out of 1001 (or 26%) of these individuals found an error! They presented the errors to their credit report bureau (either Experian, TransUnion, or Equifax) and in 79% of these instances, the credit bureau made a change to their report based on the feedback they received. Although not all of these mistakes might have altered the individuals’ credit scores, some may have been significant enough to do some damage to those scores.
To prevent errors from staying on your report, be sure to check your credit report every once in awhile. Everyone is entitled to one free review each year at annualcreditreport.com. If you see a mistake, write to your credit report bureau, explain the mistake, and provide supporting documentation.
Credit reports are used nowadays for determining the interest on a home mortgage or car loan and even determining whether to hire an individual for a job. Be sure to check your reports at least once a year to ensure they are accurate.
-Allison G.
Sage Personal Finance 