A new study into the effects of credit card reports finds that as many as 5% of all consumers could be paying more interest due to inaccuracies on their credit reports. The Federal Trade Commission sponsored the study, which looked into how three major bureaus had reported information for more than 1,000 study participants.
Most shocking might be the distribution of inaccuracies. According to the data, nearly one in four participants had a significant error on one of three of their reports. These errors were significant in their information only, and may not affect their scores.
However, 26 of all study participants did have some error that may have affected their ability to get credit at a favorable interest rate if uncorrected. The inaccuracies included everything from the number of accounts for each consumer, the consumer's history of paying on time, or the balances on the credit accounts outstanding. Inaccuracies also extended to portions of credit reports dedicated to collection accounts and judgments.
Luckily, only five percent of people experienced an inaccuracy which would completely and certainly affect the interest rate paid on a loan or credit line. However, this FTC research does underscore one very important reality: credit scores and reports are not always 100% accurate and inaccuracies can lead to significant material costs for people who do not verify the information in their reports are correct.
Those interested in getting a free credit report can get one from the FTC's website or from a lender if they have been denied a loan or credit line.