Don't Let Inaccuracy Ruin Your Credit Score
Why You Need to Check Your Credit Report, Even If You Have Excellent Credit
It is estimated by credit-industry experts that roughly 75% of U.S. citizens who are 18 years or older-and who are therefore eligible for credit-have credit scores associated with their social security numbers.
The credit score is, for anyone who is not familiar, the number that represents your creditworthiness (i.e., the likelihood that you will pay off debt). Lenders, including banks and credit card companies, use credit scores to evaluate the potential risk associated with lending money to individuals.
Alarmingly, the vast majority of individuals with credit are unfamiliar with their credit scores. In fact, most are unsure how to even begin finding out what their credit scores actually are! A survey commissioned by the Consumer Federation of America found that only 2% of adults with at least one credit card said they know their credit score, and only 3% could, unprompted, name the three main consumer reporting agencies.
Your credit score with each consumer reporting agency could contain substantive errors
Each consumer reporting agency (CRA) collects and maintains information from various sources and provides consumer credit information on individual consumers for a variety of uses, including individuals' borrowing and bill-paying habits. However, it is estimated that 90% of credit reports provided by CRAs contain inaccuracies! Common causes of errors broadly fall into one of two categories: inclusion of incorrect information, and exclusion of correct information. Reasons for these inaccuracies include the following:
- consumers providing inaccurate information to the CRAs
- incorrect or incomplete data input by furnishers
- furnishers failing to provide data to the CRAs
- incorrect or incomplete data (or data applied to the wrong consumer) by the CRAs
With the high likelihood that your credit score with each of the major CRAs contains one or more of the aforementioned inaccuracies, all borrowers should check their credit scores at least once every year.
Get Your FREE Credit Score in 3 Easy Steps
Luckily, it's as easy as 1-2-3 to see your credit score, and you won't pay so much as one penny to see it! As a result of the FACT Act (Fair and Accurate Credit Transactions Act), each legal U.S. citizen is entitled to a free copy of his/her credit report from each CRA once every twelve months. The law requires all three major CRAs-Equifax, Experian and Transunion-to provide reports.
To get your free credit score in just 3 easy steps, just follow the instructions on the following page.