Have the Most Up-to-date Information Recorded in Your Credit Report

The Federal Reserve Board published a comprehensive study examining the information in consumer credit reports in 2003. This study identified several areas of concern regarding the data. The researchers noted that a large number of accounts had not recently been updated. Among accounts reported with a major derogatory piece of information as the most recent addition, such as a significant delinquency, almost three-fifths of the reports were not current. The researchers concluded that many of these accounts had been closed or transferred, and that it was likely that consumers who had paid off delinquent accounts since they were last reported were being penalized.

Most of the problems identified in the study “result from the failure of creditors, collection agencies, or public entities to report or update items.” In other words, most of the problems with incomplete and ambiguous data are the result of the actions of data furnishers.

Most credit grantors send a monthly update to the credit reporting agencies. Therefore, your account information should be updated once a month as well. If you are expecting an important change in one or more of your accounts or if you are closely monitoring your credit history, you may want to check your credit report more often.

Regularly checking your credit report enables you to have the most up-to-date information in your credit history.