The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
Do you know if there are errors on your credit report? Have you even looked to find out?
If you’re like nearly one-quarter of respondents in a recent survey, the answer is that you have no idea.
According to the survey, conducted in September by Qualtrics on behalf of our partner CreditRepair.com, 23.59% of respondents didn’t know if there was an error on their credit report; 24.02% knew there was at least one item they felt was in error; and 52.39% said there were no errors.
Checking your credit report is an important first step in taking control of your financial life. Of course, looking at your credit report is one thing — understanding it is another. (Here’s a cheat sheet on how to read your credit reports.) One of the biggest reasons to review your credit reports is to watch out for errors, because an inaccurate credit report can hurt your credit scores and, in turn, cost you a lot of money.
According to a 2012 report from the Federal Trade Commission, one in five people have flawed credit reports. Not all of these mistakes hurt credit scores, but many do. According to the same study, one in eight people have lower credit scores because of these mistakes.
Since your credit score typically determines what interest rate you pay on your debt, an artificially low credit score means you might pay higher interest than you otherwise should.
Keep in mind that even a tiny point penalty could cost you big. If your score just misses the next highest bracket because of those errors, you could be stuck in a lower-rated group and that means higher interest rates.
You can get your credit reports for free once annually from each of the three major credit reporting agencies at AnnualCreditReport.com. Look for any items that are clearly reported in error, but don’t stop there. By law, creditors and credit bureaus must correct or remove items if they are inaccurate, unverifiable or incomplete.
Checking your credit score regularly is also a good way to get a heads-up that there might be an error impacting your credit. (You can get a free monthly credit report summary from Credit.com to help you spot changes along the way.)
Image: iStock; Chart Courtesy of CreditRepair.com
March 7, 2023
Credit Score
January 4, 2021
Credit Score
September 29, 2020
Credit Score