Monday, February 11, 2013

FICO Credit Score SNAFU's

As many as 42 million consumers have errors on their credit reports, and around 20 million have significant mistakes, a Federal Trade Commission study of nearly 3,000 credit reports indicates in a report released today,

Not all of these errors will impact your ability to get credit, however. About 13% of study participants saw their FICO credit score change once a mistake on their credit report was fixed, and those changes were big enough to potentially result in better credit offers for 2.2% of participants. The Consumer Data Industry Association defended this 2.2% rate, saying in a statement that overall, the report "shows that 98% of credit reports are materially accurate."

But since the three biggest credit bureaus -- Experian, Equifax and TransUnion -- maintain credit reports for about 200 million consumers, the 2.2% error rate still means millions of Americans are being denied loans or given higher-priced credit due to errors on their reports, said John Ulzheimerpresident of consumer education at and a former manager at FICO.

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