A study commissioned by the three largest credit-reporting firms found that less than 1% of consumer credit reports had errors leading to a significant change in the score.
The Durham, N.C.-based Policy and Economic Research Council (PERC) examined credit reports for 2,338 individuals surveyed from February to May 2010 and found that 0.93% of the consumers had credit report disputes that led to their FICO credit scores rising by 25 points or more. Also, 0.5% had a dispute that led to their scores changing enough to affect their access to credit.
PERC found that a large majority of credit reports are accurate and that it is rare for an error to "materially impact a consumer’s access to credit," according to Michael Turner, the head of PERC, which conducted the study.
The credit reporting business is dominated by Equifax Inc., TransUnion LLC and Experian Plc.
The Consumer Financial Protection Bureau, set to begin on July 21, will have jurisdiction over consumer credit firms. The bureau, as dictated by the law that created it, must produce a study by then on the differences between reports provided to creditors and those given to consumers who are the subject of the reports.
FICO scores can range between 300 and 850. A score lower than 620 generally makes it difficult for consumers to get credit, while a score above 650 signals good credit.
The report also discusses credit scores in terms of VantageScore, a similar system developed by the major credit firms. For more about VantageScore (
