How can an error on my credit report affect me?

How can an error on my credit report affect me?

Studies have shown that at many as 50 to 70% of credit reports have errors on them. These can be as minor as an old address or as major as showing that you have filed bankruptcy or have defaulted on a major loan that wasn’t yours. These errors on your credit report can keep you from obtaining a mortgage, car loan, credit card, insurance or even employment because of these errors. Or, if you are able to obtain the loan or insurance, you may pay a much higher rate or premium than you would have without the errors.

Both Federal and state law, require any consumer reporting agency to accurately report and maintain information on you and your credit history. If a credit reporting agency has inaccurate records, they may be violating the Fair Credit Reporting Act (FCRA). Consequently, you can sue a credit bureau and/or furnisher/creditor for violations of these laws.

These errors may affect your credit and your life for a long time. A consumer reporting agency can leave inaccurate or false information on your credit report for up to seven years if they are not forced to remove the information. However, a criminal conviction does not have a time limit. So, this false information, if it is on your report, could damage your credit and reputation indefinitely.

Unfortunately, this same information can prevent you from getting a job or could result in your termination. With your permission, an employer can obtain a copy of your credit report. Many prospective employers run back ground checks that often include pulling credit reports. Many of these employers making hiring and firing decisions in part on these reports.

If, after pulling your credit report, you find errors, you should act quickly to correct them. Please go to this link for help in correcting the errors on your credit report. If the consumer reporting agencies refuse to correct the errors, you may have legal remedies under the Fair Credit Reporting Act. At this point, you should contact a consumer attorney to discuss your legal rights and options.