Escrow Trust Advisors | U.S. Consumers Fail to Review Credit Reports, New Report Finds
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U.S. Consumers Fail to Review Credit Reports, New Report Finds

U.S. Consumers Fail to Review Credit Reports, New Report Finds

According to a new report, most U.S. consumers fall short when it comes to reviewing their credit reports on an annual basis. When it comes to purchasing a big-ticket item like a home or a car, most people realize just how big of a part their credit score plays with regard to financing. So, it’s a wonder that so many people overlook this critical aspect of their finances.

The Consumer Financial Protection Bureau (CFPB) recently found that many Americans overlook their credit score altogether, while only one in five people actually obtain a copy of their credit report annually. Adds Richard Cordray, CFPB’s director, “Credit reports on a consumer’s financial history and behavior can determine eligibility for credit cards, car loans, and home mortgage loans – and they often affect how much a consumer is going to pay for that loan.”

There were between 32 and 38 million items disputed on consumer credit reports in 2011, most of which were in regard to debt in collections. The CFPB notes, “The most effective way for consumers to identify errors in their reports is to obtain copies and review them.”

Approximately 200 million Americans have credit reports on file with the three biggest credit reporting agencies, Experian, TransUnion, and Equifax. But only about 44 million people take the time to review their credit report each year. If you’re considering purchasing a home, taking a look at your credit report should be step one.