Question: What Percentage of Consumers Have Errors in Credit Reports?
Answer (from FTC report): About 1 in 4 (25%):
From American Banker:
A widely cited study by the Federal Trade Commission in 2012 found that one in four consumers have potential mistakes on their credit reports. Worse, one in 20 may have errors significant enough to negatively impact how much he or she pays for a loan, or whether credit is provided at all. Given that 220 million Americans are now on file with the bureaus, that’s 11 million consumers with possibly material errors on the reports they will use to buy a house, car or even secure a job.
So, the next time you ask your students to be sure to check their credit report, be sure to let them know the frequency of these errors!
Check out the NGPF lesson on Monitoring Your Credit.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.