Credit reporting companies are designed to provide businesses, landlords and others with information about potential consumers. They are supposed to be helpful, but in some cases they can cause a great deal of harm.
Two issues that can result from an error in your credit report include resulting in higher prices and denials for victims.
Credit reporting errors can lead to higher prices
A mistake within your credit report can make it appear that you are a more risky candidate than you are.
One example of a potential issue involves those applying for a mortgage, car loan or other form of loan as this perceived risk can translate to a higher interest rate. In addition to loans, faulty mistakes on the score can also translate to higher insurance rates.
Credit reporting mistakes can result in denials
In addition to a higher price, a person may receive a flat-out denial based on the findings of the credit report. This was outlined in a recent piece by The Washington Post, where a journalist was almost denied an apartment when his credit report came back with multiple, serious criminal offenses.
Although credit reports do not generally include a list of criminal convictions, the companies that offer credit reports often offer additional services that include this information. The offenses were included in error, but it took a great deal of time and effort to remove the errors from the report.
Tips for those who are the victims of credit reporting errors
If you believe that you are the victim of credit reporting errors, you are not alone. Over 158,000 complaints have been filed against the most popular credit reporting agencies since 2012.
Such errors can be amended, but the process may be complex and time consuming. The journalist who shared his story with The Washington Post explained that he had to deal with the credit reporting companies and court clerks in other states he had once lived. He also stated that his position as a journalist writing a story on his experience mitigated the already long and laborious process.
Unfortunately, these errors can snowball into many problems. Those who are struggling with debt have options. These options can include fixing the errors. For those who have struggled with debt issues and are looking for an option that could lead to future financial security, bankruptcy may be an option. Contact an experienced bankruptcy attorney to review your situation and help you decide what is best for your future financial success.