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Consumers impacted by credit score mistakes have options

On Behalf of | Jul 25, 2022 | Uncategorized

Across South Carolina, people need to have credit to function personally and professionally. When their credit score is misreported, it is not a minor problem. It must be handled immediately. The ramifications of a poor credit score can impact every aspect of a person’s financial life.

Simply paying debts on time and keeping credit balances low is a good way to maintain a solid credit score. Still, people can, and do run into financial challenges and many find that their score is not where they want it to be. With time, they can improve it. Another concern is the substantial reliance on credit reporting agencies.

Their power is extensive and if they make mistakes, it can harm a person and their family in myriad ways. Knowing how to dispute errors on their credit report is imperative. It is also wise to have experienced guidance when the mistakes are extreme and results are not being achieved by going through the conventional channels.

Large credit reporting company made mistakes with its credit score calculations

The credit reporting agency Equifax admitted that it made mistakes with its credit scores and gave lenders incorrect information about the credit history of millions of people. For an estimated 300,000 consumers, their credit score was inaccurate by a minimum of 25 points. According to Equifax, they had a coding issue that led to the errors.

Although it was downplayed as a regrettable misstep, this damaged people’s credit and prevented them from receiving credit they would otherwise have gotten. The company keeps track of consumer’s credit and sells the information to lenders and banks. It has made errors in the past. In 2017, for example, people’s personal information was compromised and it paid a massive amount to clear it up.

Credit scores are crucial. If people want to purchase a home or an automobile, an inaccurate credit score that makes them look like a higher risk than they should be will lead to a higher interest rate. It could even result in them being denied a loan. Employers sometimes look at credit scores with a person’s permission. A bad score can harm them professionally. Therefore, it is essential to keep track of credit scores and fight back against credit reporting mistakes.

Having help with credit reporting errors can clear these mistakes

While people should be aware that they are more than a credit score, it can still be problematic when they try to achieve what they want out of life. The news that a major credit reporting entity make glaring errors indicates just how much power these companies have. Those who were damaged by this or have found other credit reporting errors must know their rights.

Consulting with experienced professionals who will go to battle with their clients to correct mistakes and help them get on better financial ground is essential. The size of the credit reporting agencies and the tactics they use should not dissuade people from fighting for their rights. Calling those who are not afraid to take these companies on and hold them accountable is essential.