Are There Errors in Your Credit Report?

moneyThe Federal Trade Commission (FTC) reported this week that 5.2% of consumers have errors in one of the three major credit reports that may result in less favorable loan terms.  Many people don’t understand why they have trouble getting a bank loan or mortgage and this could explain the problem.

Results of this study make it clear that we should check our credit reports regularly, not just expect them to be correct because we know that we don’t have any financial problems.  You can check your credit for free once a year by going to  John Ulzheimer, a nationally recognized credit expert, states ” We have to become more engaged with our own credit reports.  We can’t assume that everyone is getting it right all the time.”

The FTC found that there were about 21% of participants in the study who had inaccuracies on their credit reports but the impact of those were modest or had no impact.  However, for a small number of consumers the errors are very serious and could cause problems when trying to borrow money.

Although there have been other studies of credit reporting errors, those studies were conducted by consumer groups funded by the credit industry.  This study was mandated by Federal law and the FTC does not represent any consumer or credit reporting groups.

What to do if you find an error?  You should immediately dispute the information with the credit reporting agency.  One in five consumers had errors that were corrected by the credit reporting agent after they were disputed.  206 out of 262 consumers who filed a dispute had some kind of change made to their credit report.

The main problem is that most people don’t even know there are errors on their credit reports.  The solution?  Make sure you check your credit each year at before you begin that property search for a new home.

Contact me with any questions about home buying in Naples Florida and remember, it is always Toasty in Naples and you deserve your piece of sunshine.

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