Our research indicates that this credit reporting system has many imperfections. There may not be enough checks and balances to guarantee the integrity of the payment history or data supplied by creditors. When you consider the volume of information under the credit bureau management and the huge variety of organizations reporting the information it is surprising there are not even more errors. Each entry into the credit bureaus payment history file has the potential for human error at any point in the reporting process:
- The consumer accidentally supplies the wrong social security number while applying for credit;
- The person at the lending institution makes a typing error or misreads the application and enters the wrong social security number;
- The person at the lending institution checks off an incorrect field in the report, making a payment late instead of on time;
- The payment mailed is credited to the wrong account, or entered with the wrong amount;
These simple mistakes occur because of human error but can have a devastating effect on any individual and potentially result in rejection for a car loan or a home mortgage.
Fortunately, we found that all of these types of errors can be easily repaired. Unfortunately, it can take up to two months (or more) from the time they are discovered to get them removed from an individual credit history. It is recommended therefore that personal credit reports be checked periodically for errors, and in advance of applying for credit. Rapid credit repair is possible (72 hours) but is used only in conjunction with home loans or mortgage refinancing.
