Are There Errors on Your Credit Report?

Updated Aug. 28, 2022 - First published on Dec. 5, 2018

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You'd be surprised how many Americans have mistakes on their credit reports.

Your?credit report?is one of the single most important financial documents in your life. Whenever you?apply for any type of loan, lenders are going to look at your credit report to decide whether to lend to you -- and how much interest to charge. Potential employers may check your credit, and your credit report probably will be pulled when you try to rent an apartment, connect your utilities, or do something as simple as getting a cellphone.?

Since credit reports are so important to so many aspects of your life, it's essential they're accurate. Unfortunately, they actually contain far more errors than most people realize. In fact, problems with credit reports are one of the top complaints made to the?Consumer Financial Protection Bureau?(CFPB). Close to a third of all complaints made to CFPB during the 2016 to 2017 year resulted from problems with consumer credit reports, and as many people complained about credit report issues as they did about debt collectors.?

Consumers have reason to complain, as millions of Americans may potentially have errors on their credit reports. Here's how to find out if you're one of them.

How common are credit report errors?

CFPB received 317,200 complaints from October 2017 to September 2017 and around 85,000 of them dealt with credit reporting problems. This is a significant number of complaints, but the number of people who have problems on their credit reports likely is far greater.?

In fact, an older report from the?Federal Trade Commission?released in late 2012 indicated that 1 in 5 consumers who examined their credit reports found mistakes and had modifications made. Around 13% of consumers actually had their credit score changed after disputing inaccurate information. And around 5% of all consumers were found to have a mistake that significantly impacted the likelihood of getting approved for credit or the terms of any loan they'd be offered.?

There's no reason to believe things have improved substantially in subsequent years. In fact, the high number of complaints made about credit reporting agencies suggest there are still serious issues with accuracy.?

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How to find out if your credit report has a mistake

The only way to know if your credit report contains mistakes is to check your full report -- not just your score. You can obtain a free copy from Equifax, Experian, and TransUnion one time each year. These are the three major credit reporting bureaus in the United States. To obtain your report from each of these bureaus, visit?Annual Credit Report.com.

Errors can be introduced at any time, so don't assume that if you've checked your credit in the past, it's 100% accurate. You should check on a regular basis to make sure there are no issues. If you pull one report from Annual Credit Report.com from each bureau every three months, you'll be able to keep tabs on your credit without paying for a report.

And if you're denied credit, you can request a free copy of your report from the bureau the lender used to check on you.?

Once you've obtained a copy of your report, look carefully for:

Inaccurate reporting of late payments
Judgments against you that weren't actually issued
Creditors who incorrectly reported accounts as being charged off or in default
Accounts you don't recognize
Addresses you've never used
Alternative names you haven't used

Some of these -- such as accounts you don't recognize -- could be signs of identity theft. Any of this misinformation could potentially hurt your score and ability to obtain credit.?

What to do if your credit report has errors

If you find a mistake on your credit report, you're entitled to dispute the error. You can do so via mail or online with each of the credit reporting bureaus. The?Federal Trade Commission?provides a sample letter you can use to submit a dispute and recommends submitting by mail so you have a record.?

The information you need to submit your dispute is below for each of the credit reporting agencies:

Equifax:?Mail your letter to Equifax,?PO Box 740256, Atlanta,?GA?30374-0256, or submit?online disputes here.
Experian: Mail your dispute request to Experian, PO Box 4500, Allen,?TX?75013, or?submit your dispute online here.
TransUnion: Mail your request to Consumer Dispute Center, PO Box 2000, Chester,?PA?19016, or submit your?dispute online here.

Credit reporting agencies are typically required to investigate disputes within 30 days after you submit your request, unless the dispute is seen as frivolous. This investigation includes providing information you submitted to the credit issuer that placed the allegedly incorrect information on your report. Issuers need to investigate, respond, and report back to the credit reporting agency. If they determine they reported something incorrectly, they'are required to notify all three reporting agencies.?

You'll receive a written summary of the results of the investigation after the process is complete. If your credit report is changed because of the dispute, you also must be provided with a new free copy. Credit reporting agencies are prohibited from putting already-disputed information back on your report unless or until the credit issuer that reported the information provides verification of its accuracy.?

Make sure to check your credit -- today

It takes time to dispute inaccuracies on a credit report, so don't wait until you may need a loan or must have your credit checked for a job or rental application. Check your credit report today and take action if you're one of the many Americans with inaccuracies on this important financial document.

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Christy Bieber

Christy Bieber is a full-time personal finance and legal writer with 15 experience. She has a JD from UCLA and is a former college instructor.

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If You Have a Wells Fargo Savings Account, You Should Switch ASAP. Here's Why

By: Steven Porrello | Updated Nov. 7, 2023 - First published on Nov. 7, 2023

These days, storing your savings in a Wells Fargo account pretty much serves one purpose: Quick access to cash at brick-and-mortar banks or ATMs. But if you have savings you're not spending anytime soon, a Wells Fargo Way2Save Savings account ranks high in the worst places to keep your savings. No offense if Wells Fargo is your favorite bank, but it's time to stop leaving money on the table. Here's why.?Wells Fargo can't compare to today's top high-yield savings accounts?As of writing this, the Wells Fargo Way2Save Savings account has a 0.15% APY, which is not only lower than the national average (0.60%) but also several times lower than today's top-paying savings accounts. At 0.15%, you'll earn about $15 annually for every $10,000 you save. Not exactly the most exciting reward for saving money.?By comparison, many of today's top-paying savings accounts have rates above 5%. Case in point: the Western Alliance Bank High-Yield Savings Account via Raisin. This account has a mouth-watering APY of 5.26%, no fees, and a low opening deposit of $1. At that APY, you'll earn $526 for every $10,000 you save. That's 35 times more than the $15 you would have earned in your Wells Fargo Way2Save Savings account.?Of course, the major benefit of the Wells Fargo Way2Save Savings account is that you can access your savings at Wells Fargo branches or via ATMs. That's important if you withdraw cash frequently, as online banks will make you transfer the money electronically to an account with ATM access.?But even if accessing cash is important to you, there are still better options than the Wells Fargo Way2Save Savings. For example, the SoFi Checking and Savings account gives you a cash back debit card and access to over 55,000-plus fee-free ATMs. Plus, it has a decent APY of up to 4.60%. That's not the highest APY I've seen, but it's not bad for an account that combines checking and savings into one.?What about the Wells Fargo Platinum Savings account?Now, the Wells Fargo Platinum Savings account does have a compelling offer right now. New savings customers can lock into a promotional APY of 4.62% when they sign up for a new Wells Fargo Platinum Savings account before Jan. 9, 2024, and maintain a daily minimum balance of $10,000.?The emphasis there is on "new." According to the fine print, this offer is for new savings customers who don't currently have a Wells Fargo savings account -- whether that's Wells Fargo Platinum Savings or the Wells Fargo Way2Save Savings. So if you're already a Wells Fargo client, the bank will likely assign you the account's regular APY, which ranges from 0.25% to 2.51%, depending on balance.Again, if you're saving money at Wells Fargo, there's no question about it -- you're missing out on higher interest rates. You may have good reasons for using Wells Fargo, such as having greater access to your savings. But if you're fine with online banking, then trust me -- you deserve better than a rock-bottom APY. Take a look at today's top-paying savings accounts and see how much more you could be earning for your savings.?

Have a Chase Savings Account? You're Probably Missing Out on $400-Plus per Year

By: Steven Porrello | Updated Nov. 24, 2023 - First published on Nov. 24, 2023

Chase is the largest bank in the U.S., and one of the largest in the world. It has over 4,700 brick-and-mortar locations, more than 15,000 ATMs, and around a couple trillion in bank deposits. But for all this banking power, there's one thing Chase doesn't have: a savings account that can compete in today's high-rate environment.?Seems as if a big bank like Chase would have at least one savings account that earned high interest, right? Truth is, banks lose money when they pay high interest rates and will forgo offering them if they don't need to attract customers. As the largest bank in the U.S., Chase is doing just fine and doesn't need high rates to bring in more deposits.?But that leaves Chase clients in a bit of a conundrum. Just how much money are you missing out by keeping it in a savings account at Chase? Well, when you start to crunch the numbers, it can be a lot.?The average American is probably missing out on $400 per year?Today's most competitive rates on savings accounts are sitting at a two-decade high of about 5.25%. Most of these savings accounts are through the company Raisin, which is essentially a marketplace for finding high-yield savings and CDs. Last I checked, the highest rate on Raisin was 5.30% on a Customers Bank High-Yield Savings Account, followed by both VyStar Credit Union and DR Bank at 5.29%.?How much could you make on 5.30%? According to a recent survey of U.S. Family Finances by the Federal Reserve, the median savings in 2022 was about $8,000. If you saved $8,000 in the Customers Bank High-Yield Savings Account powered by Raisin, you would earn about $424 within a year.?In contrast, a Chase Savings Account pays out at a rock-bottom APY of 0.01%. At that rate, it's almost pointless to do the math but if you like your copper Abes, you'd make about $0.80 on $8,000 in 12 months.When is a Chase savings account worth it??I'm not going to lie -- I have a Chase account. I don't keep a lot of money in it, but I do keep some. The reason is that I live four blocks from the Chase bank in downtown Portland and like the security of having some money within reach. When I need to withdraw cash (rare but it happens), I can just go in person and use the ATM. And when I need to deposit cash -- birthday money, thanks Mom -- I can do it without jumping through hoops.?If you want banking convenience like this, a high-yield savings account through Raisin or any other online bank will likely frustrate you.?Raisin is a case in point: When you deposit money in a Raisin-powered account, you transfer it from an external account (which could be a savings account at Chase) into a service bank (Lewis & Clark Bank), which is then transferred into a custodial account at the bank account of your choice (a Customers Bank High-Yield Savings Account or a Western Alliance Bank High-Yield Savings Account, for example). If you want to withdraw this money, you have to transfer it back to your external account, which could take a few business days. For those who need cash fast, each nail-biting day might make that high yield not worth the stress.?So you might have to diversify. Truthfully, it's best to keep a little money within easy access for emergencies, but not so much that you miss out on today's high rates. If you've engorged your Chase Savings Account, take a look at some other top-paying savings accounts to see how much you could earn in interest. If your savings is anywhere near the median -- $8,000 -- you could potentially pick up at least $400 on your savings.?

3 Banking Predictions for 2024

By: Maurie Backman | Updated Nov. 24, 2023 - First published on Nov. 24, 2023

Since March 2022, the Federal Reserve has been raising interest rates to slow inflation. That's caused a world of upheaval for borrowers who are now facing higher interest rates on everything from credit card balances to personal and auto loans.The one silver lining, though, is that higher interest rates are benefitting people with money in savings accounts and CDs. But will that continue into 2024??Without a crystal ball, we can't predict what's in store for banking with certainty. But here are a few probable scenarios.1. Savings account rates will remain competitive but fall as the year goes onRight now, it's possible to score well above a 4% APY on a high-yield savings account. But will that be possible throughout 2024? Maybe, but it's not certain.The Fed is expected to cut rates in 2024 if inflation continues to cool. That could result in lower interest rates for savers with money in the bank.That said, savings account rates will likely remain competitive next year. So if you need a good place for your emergency fund, a high-yield savings account will still be a wise choice, as you can earn interest while keeping your money safe. But don't be surprised if you don't earn quite as much interest on your savings in the new year as in 2023.2. Short-term CDs will be attractive?Like savings account rates, CD rates are competitive right now following the Fed's actions. And chances are, that will still hold true in 2024.?But banks may be more willing to offer higher rates for short-term CDs than longer-term CDs in 2024 in anticipation of broad rate cuts. So you may find that you're able to earn more on a one-year CD than on a five-year CD.3. Long-term CD rates could drop more substantiallyBanks commonly reward savers who open long-term CDs with higher interest rates than shorter-term CDs. But we may see the opposite in 2024 due to projected rate hikes from the Fed.This isn't to say that opening a longer-term CD won't make sense in 2024. But we could end up seeing lower rates next year than the rates that are available for five-year CDs today. So if you're interested in opening a five-year CD, you may not want to wait until the new year, but rather, take action in the coming weeks.?All told, there's a good chance that banks will be able to continue to offer attractive interest rates on savings accounts and CDs in 2024. But it's good to have a sense of changes that might arrive as inflation continues to moderate.Of course, that's not guaranteed to happen, either. And if inflation picks up and the Fed is forced to raise rates in the new year, all of the above predictions could be a bust. But since that's not expected to happen, you may want to assume the projections above are reasonably spot-on -- and sock your money away accordingly.

How to Find Items That Are Marked Down to 1 Penny at Dollar General

By: Christy Bieber | Updated Aug. 6, 2023 - First published on Aug. 6, 2023

If you're trying to keep your credit card bills down, buying something for a penny may seem like a dream scenario. After all, what could be friendlier to your bank account than purchasing an item you want or need that costs only a cent?In today's day and age, it may seem impossible to find anything to purchase so cheaply, but that's not necessarily the case. In fact, it may be possible to find penny items at Dollar General.That's because the store has a system in which items that are supposed to be removed from stock are priced at $0.01. If employees do not remove these items from the shelves before the price adjustment happens, they'll ring up for only a penny.So, how can you find these items? Here are the steps you'll need to take.1. Go shopping on the correct dayItems are marked down to a penny only when it's determined that they need to be removed from stock. Typically, this markdown process happens on a Tuesday, so if you want to be able to buy one of these deeply discounted products, you'll want to go shopping then.Since others may also be on the lookout for the penny products, it can help to go early in the morning before all of the items you might want are bought up.2. Check the penny lists onlinePenny items are not advertised, since they are not really supposed to be for sale at that price. This means you can't just consult the Dollar General sales flyer to see what's on discount. You also shouldn't ask cashiers, as they not only won't help you find the items but instead are more likely to remove them from the shelves before you can purchase them.Since these products are like hidden gems, you'll want a guide to discovering them -- and there are a few lists online that can help you do that. The Krazy Coupon lady publishes a weekly list of penny items. You can also join Facebook groups dedicated to finding them.Since penny items change regularly, you'll want to check out these resources every week to see what's on discount.3. Load up your cartWhen you are lucky enough to find a penny list item on the shelves, you should bring up as many of the items as you want to purchase.As soon as you have alerted the store to the fact the items were left on the shelf, they will be pulled so you won't have a chance to get any more of them. If they ring up for a higher price, you can just say you changed your mind.4. Get lucky with your cashierFinally, you need to hope that the cashier you have ringing up your items allows you to actually buy them. Official store policy is that they should not be purchased, so you may well be told you can't actually get the item for a penny and may have to put the item back.While there's an element of luck involved in both finding the penny items and being able to buy them, it may be worth the effort to try if there's something on the penny list you are excited about purchasing -- or if you happen to be at Dollar General anyway.

Does Your Income Make You Upper Class, Middle Class, or Lower Class?

By: Christy Bieber | Updated Sept. 5, 2023 - First published on Sept. 5, 2023

Incomes vary widely across the United States, with some people making many times the amount that others earn. If you've ever wondered how your personal finances stack up, and what "class" your income officially puts you in, here's what you need to know.What income do you need to be upper, middle, or lower class?Based on 2021 data, here's what you would need to earn in order to be in each class:Lower class: This is defined as the bottom 20% of earners. Those in the lower class have an income at or below $28,007.Lower middle class: This is defined as individuals in the 20th to 40th percentile of household income. Earnings among this group are between $28,008 and $55,000Middle class: The middle class is officially those whose earnings put them in the 40th to 60th percentile of household income. The income range is $55,001 to $89,744.Upper middle class: Anyone with earnings in the 60th to 80th percentile would be considered upper middle class. Those in the upper middle class have incomes between $89,745 and $149,131.Upper class: Finally, the upper class is the top 20% of earners and they have incomes of $149,132 or higher.Take a look at these numbers and see where you fall based on your own earnings. And remember, this is a snapshot in time -- your earnings can change throughout your life, and so can your class designation.Will your success be determined by your income and class?It's probably not a surprise that those in the upper classes or in the upper middle class do have a higher net worth than those in the lower class or the lower middle class. But the disparity is greater than you might think. While the median net worth of those with incomes of $149,132 or higher is $805,400, the median net worth of those in the lower class is just $12,000.Your income impacts how easy it is for you to build wealth. If you make more money, it is easier to save it and invest it in a brokerage account where it can work for you. If you make less money, then you may struggle even to cover the necessities out of your checking account, much less to buy valuable assets that help you grow richer over time.But that doesn't mean people who don't make a lot of money can't be a financial success. A lot depends on what you do with the money you actually have, including how much you spend and how much you save.There are plenty of people who make over $100,000 a year who live paycheck to paycheck, and plenty of people with incomes that put them squarely in the lower or lower middle class who have diligently saved and grown quite wealthy over many years.Here's how you can improve your standingDon't be discouraged if you aren't in the class you hope to be. For one thing, you have opportunities to increase your income by taking the following steps:Learning new job skills: You could obtain a certification, take part in a management training program at work, or take some classes to develop skills that may help you get promoted (such as computer training courses or public speaking classes), depending on your industry.Take on a side hustle: The average side hustle brings in $483 per month, which is a good amount of extra money that could make a meaningful difference in your income.Work some extra hours: If your company allows you to work overtime, take advantage of it, as many people are paid time and a half for overtime hours.Negotiate your salary: According to Pew Research, when workers negotiated for higher pay, 28% said they received the extra money they asked for and 38% indicated they were given more than originally offered but less than their ask. Whether you are getting a new job or staying at your current job but feel you're underpaid, it doesn't hurt to make a request for more money -- especially if you can find salary data to back up the fact that others in your industry are paid more.And even if your earnings never put you in the top 20% of earners, you can still have a rich life and end up with the financial security you deserve -- especially if you prioritize saving as much as you can for as long as you can.

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