The Problem With Credit Reports
Your credit information is routinely collected and sold to interested parties, but according to CBS News, more than forty million Americans have a mistake on their credit reports. Twenty million have significant mistakes that might keep them from buying a car or home, landing a job, or obtaining a security clearance. Some people find it nearly impossible to have those mistakes removed from their credit reports. In the Chicago area, if you can’t get a mistaken credit report fixed, get advice and help right away from an experienced Chicago financial services lawyer.
Consumer credit reporting is dominated by three huge firms: Experian, TransUnion, and Equifax. They gather our credit information from the people we do business with and sell it to banks, merchants, insurance companies, and employers who then use the data to judge our creditworthiness and reliability. But is the credit reporting industry itself reliable? According to the Federal Trade Commission (FTC), almost 42 million Americans have errors on their credit reports, or about 13% of the entire national population. FTC Chairman Jon Leibowitz told CBS, “One out of five Americans has an error on their credit report. And one out of 10 has an error on their credit report that might lower their credit score.”
How can you fix a mistake on your credit report? First, understand the difference between a credit report and your credit score. Your credit report includes your credit balances, information about your timeliness with bill payments, and any liens or records of bankruptcy. Your credit score is a specific number determined by a formula; the number can range from 300 to 850. Generally, a score of 700 or above is considered “good.” If you discover an error, contact the reporting agency in writing and keep a copy for yourself. The agency should respond in 30 to 45 days. You should also provide written notice to the actual company responsible for the error (such as a utility provider or credit card company).
Sometimes, and in spite of your best efforts, a mistaken credit report stays mistaken, and you may be unable to purchase a home or car through no fault of your own. In the Chicago area, if this happens to you, get advice and help right away by speaking with an experienced Chicago financial services lawyer.
