According to the reports of the new study that was released today by the Policy and Economic Research Council (PERC), consumers can now rest easy and they need not be too concerned if there is a possibility of errors occurring in their credit reports, which could be negatively affecting their creditworthiness.
The PERC research is a statistically sound and comprehensive study that is performed under rigorous peer review. The accuracy of the data that has been collected and maintained by the three major credit reporting agencies – Equifax, TransUnion, and Experian, and the impact of the outcome of the credit report disputes, has been studied in great detail. More than 2000 consumers were engaged in the study in order to examine their credit report entries, spot inaccuracies, and file disputes wherever necessary, as well as to discuss their satisfaction levels candidly with regard to the outcomes.
The study revealed the following:
- At least 0.93% of the credit reports that were examined by the consumers had prompted a dispute which resulted in a correction in the credit score which resulted in an increase in the credit score of 25 points or more.
- After the completion of the dispute process, 0.50% of the credit reports that were examined by consumers had scores that moved to the high-risk tier due to the consumer dispute.
- 95% of the consumers who were part of the study were satisfied with the outcome of the dispute process.
Dr. Michael Turner, CEO and President of PERC stated that the vast majority of these credit reports were accurate and a credit report error impacting a consumer’s accessibility to credit or the terms of the credit was very rare. He also stated that errors in credit reports were rare and the impact that it can have on the person’s creditworthiness is much lower than what one may think.
Dr. Turner also stated that they wanted to get past the myths, rumors, and headlines and find some meaningful information which regulators, advocates, and policymakers could rely on. With these results, the consequences of the errors in credit reports can move from hypothetical to factual.
He also stated that they wanted to capture consumers’ opinions with regard to their experiences while disputing the entries on their credit reports and it was found that 95% of the consumers were more than satisfied with the outcome of the whole dispute process. Overall, the consumers were satisfied with the process.
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