Experian glitch temporarily lowers credit scores

Experian glitch temporarily lowers credit scoresA glitch at the credit reporting bureau Experian reportedly led to some consumer's having their credit scores temporarily lowered, in a situation that only serves to further drive home the point of checking your credit score before applying for an auto loan.

MSNBC reports that several users who had signed up for credit monitoring services received alerts telling them that their score had dropped significantly. In all cases, it was due to the credit utilization rate, a measurement that tracks how much of a credit limit a consumer is taking advantage of at any given time.

Apparently, the glitch only affected customers using HSBC credit cards. The last two digits in the limits for these cards were erroneously entered into the system. For example, if a card had a $2,000 limit, the system accidentally saw it as $20. Needless to say, that meant nearly all of the consumers were well over the supposed "limit" and their scores suffered for it.

Experian says it was able to identify and correct the error on Monday, and the users' credit scores should now be back to normal.

Checking your credit score before applying for a bad credit auto loan can ensure that you immediately catch any errors like this before they affect the application process.