Why the latest Equifax glitch shows the importance of watching your credit score
BIRMINGHAM, Ala. (WBRC) - New tonight, a warning that you may be paying more than you should be if you borrowed money for a purchase anytime this spring. The Wall Street Journal reported that credit agency Equifax gave inaccurate credit scores on millions of consumers seeking loans.
This mistake may have hurt thousands of families’ chances to get credit, and may mean even if you were able to borrow money, your interest rate could be higher than it should be.
The company says the issue was caused by a “technology coding issue.”
The inaccurate scores were sent between March and April, and depending on the case, this could have helped or hurt you. Mistakes like this are why Marshall Clay, Partner and Senior Advisor with The Welch Group, is stressing the importance of general awareness regarding your credit score.
“These lending institutions are paying these credit bureaus for their information. So whether it is accurate or inaccurate, that is the information they are getting so it is incumbent upon all of us to at least occasionally, you don’t have to do it every day, but maybe once a month, or once every couple of months try and look at your credit scores,” said Clay.
Clay went on to say that almost everyone will need credit at some point in time, and that you need to protect your credit score to ensure lower interest rates when it comes to finding your dream home or car. If you think you may be affected, you are urged to check with your lender immediately.
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