It is always important to check your credit score at least once a year to make sure that all the information is correct and that you've authorized all accounts, as incorrect data could potentially lower your FICO score and hinder chances of securing a car loan or mortgage. However, consumers should not be too paranoid about this prospect, as Bloomberg reports less than 1 percent of credit reports are affected to this extent.
"We found that a vast majority of credit reports are accurate and that it is rare for a credit report error to materially impact a consumer's access to credit," Michael Turner of the Policy and Economic Research Council in North Carolina told the news source.
According to the study, 0.93 percent of participants' credit scores were affected by at least 25 points due to disputes with credit-reporting companies. Additionally, 0.5 percent of those surveys had trouble gaining credit for the same reason.
While the margin has proven to be small, it is always important to check at least once a year, as every consumer is entitled to a free annual credit report from each bureau.