Equifax provided inaccurate credit scores to millions of Americans earlier this Spring. The credit reporting agency sent incorrect credit scores to banks and nonbank lenders to people applying for auto loans, mortgages, and credit cards.
Equifax Provided Inaccurate Credit Scores from March to April 2022
According to a Wall Street Journal (WSJ) report, Equifax provided inaccurate scores from mid-March through early April 2022. Equifax states that it began informing lenders of the errors in May, which the reporting agency claims didn’t alter the information in consumers’ credit reports.
The WSJ report claims that Equifax sent the erroneous scores to banks of all sizes, including Chase, Wells Fargo, and Ally. One bank impacted saw 18% of applicants during the three weeks having inaccurate credit scores, with an average swing of 8 points.
The scores were sometimes off by more than 20 points in either direction applicants went from having no credit score to a score in the 700s—or vice versa. At one bank, for instance, 18% of applicants during the three weeks had incorrect scores, with an average swing of 8 points.
How Common are Credit Report Errors?
So, how accurate are credit reports? Precise pretty if a 2021 Federal Trade Commission (FTC) study is to be believed.
The FTC surveyed 1,001 participants and discovered that just 2.2% of the credit reports studied have a material credit error. These errors – again, just 2.2% of all the credit reports looked at – would result in the consumer being placed in a higher-priced credit-risk tier.
And for those errors found, there is something that can be done before there is a negative impact on your credit health. The FTC report highlights that 80% of Americans finding an error in their credit report saw a change when they filed a complaint.
Related Article: How to Dispute Errors on a Credit Report