If you haven’t checked your credit report lately, you may want to. More people than ever are reporting errors on their credit reports.
The CARES Act passed by Congress in March 2020 allowed many consumers to defer payments on federally backed mortgages and student loans, and it was promised there would be no impact on their credit score, but unfortunately for many, their credit scores took a hit.
But instead of listing accounts as current, some companies reported those deferred payments as late.
“There’s some sort of disconnect between the lenders and the credit reporting bureaus that’s causing this to happen,” said Octavio Blanco, financial reporter for Consumer Reports.
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Complaints about credit report mistakes have doubled in the past year, according to the Consumer Financial Protection Bureau, and the impact of those errors can have lasting impacts on a consumer's ability to get loans.
“This is a difficult time to have these issues, and the whole reason for the CARES Act was to give folks a break because they’ve lost their jobs, they don’t have income for ways to keep their families afloat,” said Blanco.
What Can You Do
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If you find a mistake, dispute it with each credit bureau.
Get your documents to prove your case and upload them along with your claim.
The credit reporting agencies have 30 days to investigate your dispute. If they find in your favor, the credit bureaus will make the changes. So keep checking back to make sure they did.