Are you growing frustrated with errors in your credit report?

According to a recent report by the U.S. PIRG Education Fund, you’re not alone.

Credit-reporting problems have doubled from 2021 to 2022, with over 800,000 complaints filed against credit bureaus just last year!

And it’s not just one bad apple that’s responsible for the issues – all three of the credit bureaus, Experian, TransUnion, and Equifax, received an explosion in consumer complaints. Collectively, those Big Three credit reporting bureaus made up 69% of the 800,000 complaints received by the Consumer Financial Protection Bureau (CFPB) in 2022.

According to the report by the U.S. PIRG Education Fund, here were the top 5 complaints by consumers:

28.7% Total Incorrect information on your report (229,638)
26.3% Improper use of your report (210,792)
19.1% Problem with a credit-reporting company’s investigation into an existing problem (153,539)
3.9% Attempts to collect debt not owed (31,112)
2.8% Managing an account (22,769)
19.2% Other

California consumers had the third most complaints by state (80,094), while Floridians reported the highest number of complaints in 2022, at 98,277, according to PIRG. Texas was second with 86,578 complaints, and residents in Wyoming had the least number of complaints at 337.

Why are so many Americans frustrated with the credit-reporting system?

According to Ed Mierzwinski, senior director for federal consumer programs at U.S. PIRG Education Fund, it’s due to the credit bureaus’ poor treatment of consumers. He stated, “When Americans describe a system rigged against them in the stories they file into the CFPB database, it’s unfortunately not surprising—I’ve seen it all before.”

So, what can you do if you’re facing credit-reporting issues?

  1. Keep track of your credit score to avoid nasty surprises. It’s important to check your credit scores AND reports periodically – and from all three credit bureaus.
  2. Read the fine print on your credit reports. Even small errors like old reporting dates, incorrect addresses, etc. can lead to bigger problems down the road.
  3. Don’t ignore any potential issues—proactively report errors to the credit bureau and your bank or financial institution. Of course, Blue Water Credit can do this on your behalf, formally disputing any incorrect, outdated, or false reporting errors.
  4. Be on the lookout for signs of fraud or ID theft. It’s not just the credit bureau’s reporting errors that pose a potential threat, but the huge swell of ID theft and financial fraud that may first show up on your credit reports.
  5. Lastly, always keep up your good habits like paying bills on time and keeping debt balances low to not only improve but protect your credit score.

As always, Blue Water Credit is here to help you correct any inaccuracies on your credit report, have negative items removed when warranted, and boost your score.

Give us a call or send us a message if you’d like to schedule a no-risk credit consultation and review your credit reports today!