Accuracy of Credit Reports

Accuracy of Credit Reports

http://www.freeannualcreditreportnow.com/accuracy/

Credit reports are used to verify a person's qualification for credit, employment, insurance and housing rental. Unfortunately, errors can occur in credit reports. These can be caused by identity theft or by a mistake in encoding. These errors can be very costly and may cause denial in attaining certain benefits.

The US Federal Trade Commission has announced rules and guidelines that promote the accuracy and integrity of information provided to credit reporting agencies. The guideline specifies that information provided by financial institutions and furnishers to credit reporting agencies should not mislead or create a misleading impression about a consumer's creditworthiness. This also means that furnishers must include the consumer's credit limit in the information they will provide the credit reporting agency. They also give consumers the right to dispute errors in their credit reports directly with the furnishers or financial institutions besides disputing these errors with the credit reporting agency.