How Accurate is your Credit Report?

There’s no question that with something as vital to your personal finance as a credit report, it is incredibly important that the report is accurate so you aren’t denied financing when you need it or have to pay a higher interest rate for money borrowed. But with identity theft and the chance for reporting errors, it is important to know just how much a chance of error there is. Experts on the Equifax Finance Blog explore the importance of accuracy in the new article, “The Facts About Credit Report Accuracy.”

The Consumer Financial Protection Bureau keeps track of accuracy with credit reports and found that only between 1.3 and 3.9 percent of consumers disputed items on their credit report. Another study found that only a tiny portion - half of a percent - found mistakes on their credit report that would put them into a higher risk category, which would cause them to pay more or receive a higher interest rate.

ID Theft Protection and Credit History

Your credit history can help you make large purchases (like a new home or townhome!), open new credit accounts and help with ID theft protection. However, most people have questions concerning the negatives on their credit history usually when they are considering making a big purchase such as a new home or car.

In the article, “How long does information stay on my credit report?” the experts at the Equifax Finance Blog have mapped out exactly what consumers can expect when they have negatives on their credit report.

Starting with the basic question of, “what is a credit score?” consumers should be aware that all of the information rolled into your credit score comes from the reports that lenders have sent to the three credit reporting agencies, from public records and from collection agencies. Together these make up your credit score.

Face the Fear of the Terrifying Credit Score

Your credit score isn't something to be afraid of.

For some there is something more terrifying than a spooky monster lurking around this Halloween - it’s their credit score! Thankfully, your personal finance doesn’t have to be a horror story worthy of the frightful holiday season. The Equifax Finance Blog is here to help you understand how it all works and show you that your credit doesn’t have to be scary at all in the new article, “How Does Equifax Get the Information for My Credit Report?”

First, it is important to understand the overall process of credit reporting. Let’s say you are planning on buying a new home and you are very excited about all the new things you want to purchase, from patio furniture to light fixtures. In preparation, you go open a store credit at your closest home improvement store. Although you’re not actually purchasing anything yet, the simple step of filling out the application for a store credit starts a process behind the scenes that affects your personal finances.

The store, known as the ‘creditor,’ will then report that you have applied for a line of credit to a credit reporting agency, such as Equifax, Experian and/or TransUnion. These agencies take this information and compile it into a file, which contains all the information previously collected in your name. This file is your credit report.