Errors on credit reports cause many problems: higher interest rates, wrongful lawsuits, trouble at work and more. The Fair Credit Reporting Act sets forth consumers’ rights and remedies. Every person should obtain all three credit reports once a year from www.annualcreditreport.com .
You may have negative entries on your credit report even if you have always paid your bills on time: the credit reference agencies which manage credit reports make mistakes, so even if you think your credit is good, you should make sure. A Federal Trade Commission report in 2013 estimated that 5% of credit reports contain important errors, and in a different FTC study, 26% of consumers who checked their credit reports found potentially material errors.