Even a small inaccuracy on a consumer’s credit report can have long lasting negative effects. From the most simple computer error to mixing up individual’s data, credit reporting agencies have been known to be hard to work with when trying to fix incorrect data. But that could all change under legislation introduced on April 9th that aims to ensure issues like these don’t happen.
Senate Democrats Brian Schatz of Hawaii and Sherrod Brown of Ohio have introduced a bill S.2224 that would make it easier for people to learn about and challenge errors, as well as increase the credit reporting industry’s accountability for mistakes that go uncorrected. Among the requirements, the proposal would entitle consumers to a free copy of their credit score every 12 months. But perhaps more importantly the SECURE Act will include rules requiring tougher accountability of the 3 major credit rating agencies to make corrections to erroneous errors on consumer’s credit reports.
The Advocate Capital underwriting process contemplates the credit score of the guarantors. The importance of improving your credit score cannot be understated. We encourage our clients and applicants to monitor their credit scores and bring to the attention of the credit rating agencies errors they come across. This legislation stands to improve the rights of individual consumers.
I’ve included a link provided by the Federal Trade Commission that explains how you can go about challenging an error on your credit report.
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