Credit reports for consumers are often riddled with inaccuracies and “vague” information, according to a report.
The report from Credit Karma, an online credit monitoring company, said that credit reports can “often be confusing” and that consumers have been misled into believing they have access to a comprehensive credit report.
“While many consumers may have a credit report with a few basic details like credit score, average interest rate and other useful information, many have also received credit scores that are not comprehensive,” said the report.
“Some consumers have no idea how their credit report stacks up to other lenders and others may have credit scores with some very questionable or erroneous information.”
The report also highlighted how some consumers may not receive credit scores from a third-party lender, and could be “disappointed” if their credit scores were found to be inaccurate.
“Consumers who receive credit reports from multiple credit bureaus may not understand that they can receive a range of credit scores on the same report, so it is often more accurate to use a credit score from one credit bureau than the other,” said Dan Smith, senior vice president and head of global business and strategic planning at Credit Karma.
“For example, the National Credit Union Administration (NCUA) may have multiple credit reports for you, but the same NCUA credit report may be from three different companies, or from two different lenders.
The NCUA can also have different ratings for different accounts, so the credit score may differ between different accounts.
This confusion is often reflected in the reports.
Consumers often mistakenly think they are receiving the same credit report as a different creditor, even though they have a different credit history and credit scores,” Smith said.”
Credit Karma has identified some of the most common issues consumers are encountering when it comes to credit reporting, and we are actively working with consumer advocates and law enforcement to address them.”
In its 2016 report, Credit Karma said it was aware of at least 200 cases of consumers who had received inaccurate credit reports.
In its latest annual report released earlier this year, Credit Labs also flagged the issue of inaccurate credit scores and said it had been aware of 100 consumer complaints.
“Unfortunately, this year’s report did not include any specific examples of consumers experiencing this problem, and Credit Karma has been working to fix these issues and provide credit scores for all consumers in 2017,” a Credit Karma spokesperson said.