The Federal Trade Commission (FTC) recently took a look at Americans’ credit reports, and what it discovered wasn’t pretty. One out of every 20 Americans had mistakes on their report—mistakes large enough to change their credit score and increase their rates on insurance and loans.

 

Your credit score indicates risk to a potential lender, and lower scores equate to higher risk—which means higher rates. Your credit score is also evaluated for things such as renting an apartment or even getting a job.

 

According to the report, 26 percent of consumers found a sizable mistake—like a late or missed payment—in one of their three credit reports with Experian, Equifax, and TransUnion, the leading consumer credit reporting agencies. A total of 21 percent requested and received corrections on their reports.

 

This report underscores the importance of checking your credit scores on a regular basis and alerting the reporting agencies to any discrepancies as soon as possible. You have a right to get a free copy of your credit files once every 12 months. To do so, visit the only official site: www.annualcreditreport.com.