The pandemic has affected almost every part of daily life. Your credit score could be next.
According to data from Consumer Reports and the Consumer Financial Protection Bureau, complaints about errors on credit reports more than doubled in 2020 compared to the previous year, and became the top compliant filed with the CFPB.
Your credit report is critical in your financial life. It determines everything from how much you’ll pay in interest on a loan to whether or not you’re able to buy a home. If your credit score is a grade, a credit report is like a report card, listing out all the grades you’ve earned.
Checking your credit report with expanded access during the pandemic can help you spot and dispute errors before they hold you back. Here’s how to make sure your score won’t be affected.
During the pandemic, the three major credit bureaus expanded access to credit reports via AnnualCreditReport.com, the official credit reporting website. While reports are typically free only three times per year (once per bureau), expanded access during the pandemic allows for weekly free reports to help Americans keep an eye out for incorrect information.
Consumer Reports says the errors have appeared in a number of ways, including inaccurately reported loans and payments, incorrect personal information, or repeated information. Additionally, payments in deferral or forbearance during the pandemic have been incorrectly reported as late or missed payments, the consumer advocacy group reports.
An error (which tends not to be beneficial) could mean the difference between a good score and a fair score, or the difference between very good and exceptional credit. A higher score can help you save money, making everything from loan interest to your car insurance cheaper. And, a high credit score opens the door to getting approved for loans and credit.
With more frequent access, it’s easier to access and check your credit report right now. Keep an eye out for information you don’t recognize — it could be an indication of an error.
If there is information you don’t recognize, file a dispute or contact the creditor to correct that negative information and fix your credit score.
The way to do this will vary depending on what type of mistake it is. Some issues should be taken up with the creditor itself, especially when it involves misreported information, or deferred payments being reported as missed.
If it’s another issue, like repeated information or incorrect personal information, or the creditor can’t resolve the issue, contact the credit bureau where the mistake was made. Disputes can be made by mail, and the Federal Trade Commission even has a simple form letter to start the process.
Then, follow up on the dispute to make sure it’s being investigated. Consider setting up a credit monitoring alert to stay on top of future credit report information. Keeping an eye on your information, both during the pandemic and after it’s over, can help you keep the best possible score.
