Credit affects us greatly. Needless to say, everyone understands this. Or do they? I think that a lot of people know that credit affects us greatly, but the span of things in our lives that it can affect are far more than just loans and insurance. From employment to utility companies, just about anyone who is placing any kind of investment in you will at some point weigh your credit score into that equation.
Now, one might think that this is a good system. It gives people who are thinking of placing any kind of investment into your life a chance to see how you handle your responsibilities. On paper, there's nothing wrong with that. It's simple risk management and that is definitely something we should all be wary of. However, the system we do this through is fundamentally flawed.
The Federal Trade Commission has done multiple investigations into the accuracy of credit reports, and it's alarming how common inaccuracies are. In fact, it's more than likely you yourself have inaccuracies somewhere that you probably don't know about. Considering one in five people have reported inaccuracies in their credit reports. In 2013, Equifax was ordered to pay a woman $18.6M in damages for unfixed report errors.Read More