Consumers have various protections under the law, not the least of which is the right to occasionally review their own credit reports. The information retained by the credit bureaus and reviewed by third parties can have a profound impact on the day-to-day life of individuals.
Credit reports affect employment opportunities, rental housing eligibility and access to credit. All too often, people wait until they are about to undergo a credit check to think about what their credit report might include. Unfortunately, by the time they realize that there might be accuracy issues with their credit report, they may have already lost out on valuable opportunities. People who are aware of the risks associated with inaccurate credit reports may find it easier to commit to regularly reviewing their credit reports and addressing any issues.
What impact do inaccuracies have?
Credit reports provide information about an individual’s open and prior lines of credit. They provide information about bankruptcy filings or even creditor judgments in some cases. A credit report includes a score that lenders use to roughly approximate an individual’s likelihood of repaying what they borrow. Employers sometimes review credit reports as a way of assessing an individual’s responsibility and reliability. Inaccuracies can drag down an individual’s credit score, costing them new jobs or promotions.
A lower score can also lead to less favorable credit terms, which means that it costs more for people to borrow money. Additionally, credit report inaccuracies can be indicative of identity theft. Those engaged in identity theft may start small, with a small consumer line of credit. They may then open multiple accounts in rapid succession when one goes undetected, causing massive financial complications for the targeted individual.
How can people protect themselves?
Everyone generally has the right to review their credit reports once a year. There are also many credit monitoring services that provide notices whenever information about an individual’s credit report changes. When people discover inaccurate information, they can take steps to correct those errors. Many consumers choose to hire lawyers who are familiar with credit reporting regulations.
Attorneys can help people communicate with the credit bureaus and correct issues with their credit reports. They can remove outdated or inaccurate information. They can follow the appropriate process for addressing identity theft. By ensuring that one’s credit reports remain up-to-date, people with career ambitions or who regularly use credit can protect their access to key opportunities in the future.