A recent study by the Policy and Economic Research Council has found that while many credit reports have errors, a good portion are minor in nature and not significant enough to affect car loan rates.
The New York Times reports that the Policy and Economic Research Council found potential errors in 19.2 percent of all credit reports. This number might seem high to many borrowers. However, it was later found that only 1 percent of the reports contained serious errors that could potentially knock a consumer into a lower “credit tier,” where they wouldn’t qualify for as high a rate as they would have otherwise.
Consumer advocacy groups have long maintained that the major credit bureaus do not provide drivers with significant recourse should an error show up in their report. The study seems to hurt he advocacy group’s argument, showing that the errors that actually matter are rare.
However, Chi Chi Wu, a staff attorney for the National Consumer Law Center, told the news source that this 1 percent of reports represented approximately 2 million people.
“The credit bureaus should conduct real and meaningful investigations of disputes, which they do not,” she said.
Drivers should still be sure to look into their credit reports and correct any errors that they find. This may not result in a dramatic increase in score, but every point counts when it comes to securing bad credit auto loans.