CONSUMER REPORT– At the onset of the pandemic, the federal government offered a lifeline of sorts. Companies that offer federally backed loans, including student loans and mortgages, along with some credit cards and car loans, offered payment deferrals to some consumers who were struggling to make ends meet.
This was offered with no impact on their credit score, but instead of listing accounts as current, some companies reported those deferred payments as late, an error that can have lasting impact on credit scores.
“Even a small error on your credit report can have a huge impact on your credit
score. And in terms of trying to get credit cards, mortgage, or even a student loan,
that can be the difference between getting a good rate, a bad rate, or no loan at all,” said Lisa Gill, Consumer Reports Investigative Reporter.
Credit reporting errors are common. One study found that 1 in 4 people
have at least one error on their reports. Complaints to the Consumer Financial Protection Bureau about credit report errors have reached record levels.
“This is a problem that existed long before the pandemic, but it’s an even
bigger deal today because so many people have been affected by the crisis,” Gill said.
So what can be done about it? Visit AnnualCreditReport.com to get your credit report from all three credit bureaus- Experian, Equifax and TransUnion. Then, if you find an
error, dispute it with each credit bureau.
Do this in writing and send your letter and any supporting documents using certified mail.