How credit report errors are hurting millions of Americans

The government says the reports contain significant errors that could lead to higher interest rates — and worse

Up to 10 million Americans could be victim of faulty credit reports.
(Image credit: Courtesy Shutterstock)

Anyone who has ever applied for a credit card, tried to secure a loan, or even rented an apartment knows the crucial importance of having a solid credit report. And that's why a new study by the Federal Trade Commission may have millions of Americans worried. According to the FTC, one in four consumers has a "potentially material error" on one of their three credit reports, which are produced by the agencies Equifax, Experian, and TransUnion.

The FTC says only 5 percent of consumers have an error so serious that it would result in a financial setback, such as a loan rejection or higher interest rate payments. However, with 200 million Americans covered by the three agencies, that means 10 million people could be adversely affected.

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Ryu Spaeth

Ryu Spaeth is deputy editor at TheWeek.com. Follow him on Twitter.