The pandemic could hurt your credit rating
The CARES Act, passed by Congress last March, allowed many consumers to defer payments on credit cards and certain federally guaranteed mortgages and student loans.
But some banks and credit card companies have falsely flagged these deferred payments as late, which could worsen the financial situation of those hardest hit by the pandemic.
Consumer Reports investigates the problem and reveals what you need to do to check and clean your credit report.
Even a small mistake on your credit report can have a huge impact on your credit score.
When it comes to trying to get a credit card, a mortgage, or a student loan, it can be the difference between getting a good rate, a bad rate, or no loan at all.
Credit report errors are common.
One study found that one in four people had at least one error in their reports.
And complaints to the Consumer Financial Protection Bureau about credit report errors have reached record levels.
It’s a problem that existed long before the pandemic, but it’s an even bigger problem now, as so many people have been affected by the crisis and could seek financial stability more than ever.
So what can you do?
Go to annualcreditreport.com to get your credit report from the three major credit bureaus: Experian, Equifax, and TransUnion.
Then, if you find an error, dispute it with each credit bureau. Do it in writing and send your letter and all supporting documents by certified mail.
After alerting the credit bureaus to the errors, Consumer Reports says it will likely take at least 30 days to get a response, so keep checking your report to confirm the error has been corrected.
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