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42 million U.S. credit reports have costly errors

By Mason White 11:58 AM February 12, 2013
Credit report 

By: Debbie Gross
(Scroll down for video) Were you recently denied a loan or a purchase on credit? It is very likely that your credit report might contain an error, according to press reports in the United States.

Millions of people in the U.S. have errors on their credit reports, some of which are serious enough to lower credit scores and result in bad credit offers, a recent government study revealed.

As many as 42 million U.S. citizens have errors on their credit reports, according to a study by the Federal Trade Commission of about 1,000 participants and 3,000 credit reports.

“Errors in credit reports can cost you a loan, a competitive interest rate or a job,” John Ulzheimer, president of consumer education, said.

Not all of these errors affect your ability to get credit, however. In fact, only 2.2 percent of the reports contained errors so serious that it could lead consumers to receive a higher interest rate.

But because the three major credit bureaus, Experian, Equifax and TransUnion, keep records of nearly 200 million consumers, the error rate still means that 10 million U.S. citizens are denied loans or stay with higher interest rates due to errors in their reports.

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