Study Finds Consumers Hurt By Credit Report Mistakes

WASHINGTON -- A new study suggests there's a more than one in three chance that you have bad information in your credit report that could lead one or more of the three major credit bureaus to give you an inaccurate credit score.

And that could make it tough for you to get loans or insurance at favorable rates.

Two advocacy groups have looked at data supplied to lenders by credit reporting agencies.

They conclude that consumers hurt most by errors are those on the borderline of what lenders consider a poor or good risk. Errors can hurt a consumer's chances of getting a good interest rate on a loan and cost them thousands of dollars

The groups also found the reports sometimes fail to include delinquencies or other damaging information.

The advocacy groups want federal agencies to evaluate credit scoring systems. And they say creditors should provide free copies of credit reports to consumers when they deny loans.

The Consumer Federation of America said there are some things you can do to protect yourself.

First, stay consistent in all of your credit applications. Always use the same name, your full legal name.

Also, review your credit record on a regular basis by purchasing a credit report and score once a year from each of the "big three" credit reporting bureaus: Equifax, Experian and Trans Union. If you see errors, dispute them.

When a lender tells you that you have bad credit, ask for specifics.

Finally, if you can't get complaints resolved, contact the Federal Trade Commission in Washington on their Web site.

To protect yourself, experts recommend getting a copy of your report at least once a year.

Call the three major credit-reporting agencies: Equifax at (800) 685-1111, Experian at (800) 333-4930 and Trans Union at (800) 888-4213.