As mistakes on credit reports increase, two consumer advocacy groups are urging Americans to do regular "credit checkups" by getting their free credit reports as often as once a week.

Rising Complaints About Credit Report Errors

Complaints about credit report errors have more than doubled since 2021, according to Consumer Reports. Last year, nearly 645,000 complaints were submitted to the Consumer Financial Protection Bureau (CFPB), up from about 308,000 in 2021. Errors on credit reports can seriously impact a person's ability to secure housing, jobs, and loans.

The "Credit Checkup" Project

Consumer Reports and WorkMoney, a nonprofit that helps improve financial conditions for Americans, have launched the "Credit Checkup" project. This project encourages people to regularly review their credit reports for mistakes and report any errors to the CFPB.

Importance of Accurate Credit Reports

Maintaining an accurate credit report is crucial because it influences whether you can get a loan, the interest rate on that loan, and even your ability to get a job or an apartment. Errors in credit reports can lead to higher interest rates, costing extra money that could be used for essential expenses like food, gas, or savings.

Checking Your Credit Reports

Since the COVID-19 pandemic, the three major credit agencies—Equifax, Experian, and TransUnion—allow consumers to check their credit reports once a week for free at AnnualCreditReport.com. The advocacy groups urge consumers to check their reports for mistakes and share feedback on the accuracy and ease of resolving disputes at cr.org/credit checkup.

Common Credit Report Errors

Common mistakes on credit reports include incorrect personal information like your name or address, and wrong reporting of debts.

AVOID PULLING CREDIT ONLINE

This one sounds difficult, but if you pull your credit report online then the credit agencies will force you to agree to their arbitration clause which may limit your future rights. A better solution is to call the credit agencies directly to request your credit report. 

Steps to Take if You Find Errors

1. File a Dispute: Contact each major credit reporting bureau to file a dispute.
2. Include Documentation: Provide statements or payment records when disputing a debt.
3. Write a Letter: Explain the problem in a letter.
4. Keep Records: Make copies of all materials and send them by certified mail.
5. Escalate if Necessary: If the dispute isn't resolved, file a complaint with the CFPB.
6. Seek Legal Help: Consider hiring an attorney to sue over unresolved credit report errors.

Regularly checking your credit report and addressing any errors promptly can help protect your financial health and improve your access to credit, housing, and job opportunities.