GOLDEN VALLEY, Minn. - A new study of the U.S. credit reporting industry finds 5% of consumers had errors on one of their three major credit reports. If you are one of them, it could leave you paying more for everything from auto loans to insurance.
Dan Ament, Financial Advisor with Morgan Stanley in Wayzata joins KARE 11 Sunrise with more on the new study and the importance of watching your credit score and reporting the discrepancies.
FTC Credit Report Study Results: The study by the FTC, in which participants were encouraged to use the Fair Credit Reporting Act (FCRA) process to resolve any potential credit report errors, also found that: One in four consumers identified errors on their credit reports that might affect their credit scores; One in five consumers had an error that was corrected by a credit reporting agency (CRA) after it was disputed, on at least one of their three credit reports and Four out of five consumers who filed disputes experienced some modification to their credit report. (Refer to study details via FTC link below)
Request your free credit report: You are entitled to receive a free copy of your credit report annually. Review your credit report in detail for accuracy. Report any discrepancies promptly to the respective credit bureau with any supporting documentation. From the FTC website .... Tell the consumer reporting company, in writing, what information you think is inaccurate. Tell the creditor or other information provider in writing that you dispute an item. Many providers specify an address for disputes. If the provider reports the item to a consumer reporting company, it must include a notice of your dispute. And if you are correct - that is, if the information is found to be inaccurate - the information provider may not report it again.
Preventing damage to your score: Payment history (35% of score) - Pay your bills on time. Amounts owed (30% of score) - Keep balances low on credit cards and other revolving credit. Don't close unused credit cards as a short0-term strategy to raise your score. Don't open new credit cards that you don't need just to increase your available credit. Length of credit history (15% of score). New Credit (10% of score). Types of credit (10% of score).
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