Are you checking your credit report regularly? If not, you should be. According to data from the Consumer Financial Protection Bureau, credit report errors are skyrocketing.
The Consumer Financial Protection Bureau’s report found that in 2020, consumers filed 280,000 complaints about credit reporting issues. As The New York Times reports, that was a 50 percent increase compared to 2019. The most common mistakes consumers found on credit reports included repaid loans appearing as unpaid, debts falsely denoted as being in collection, and incorrect personal information.
These mistakes can cost you dearly. The information in your credit report is used by lenders to determine whether you receive loans, credit cards, mortgages and more. Your credit report is also used by lenders to set interest rates on loans.
The key to preventing credit report errors is to be vigilant. Luckily for you, it’s easier now to check your credit report than ever, right in online or mobile banking. If you spot any errors, report them to the credit bureau. You can file a complaint online, but if you file via mail, send it certified so you have verification it was delivered. Keep copies of the complaint for your personal records.