Nearly half of Americans don't check credit scores - Consumer Reports

LOS ANGELES (KABC) -- A Consumer Reports' survey finds close to half of Americans never check to see if their score is actually accurate.

Nathaniel Lewis was hoping to move out of his apartment and purchase a home. But recently, when he sought help applying for a mortgage, he discovered his credit report showed he had bad debt totaling more than $180,000.

"When I saw what was on my credit report I was flabbergasted. Eighty percent of it wasn't mine," Lewis said.

The problem was the records of another man with the same name had gotten mixed up with Lewis'.

A new Consumer Reports survey of 3,000 Americans found that credit errors are surprisingly common. Of those who checked their reports, about 20 percent found mistakes that could lower their credit scores.

"Mistakes can lead to losing out on a job, on an apartment rental or on a good interest rate on a loan. That is if you're not turned down altogether. Credit report mistakes can really hurt," said Tobie Stanger with Consumer Reports.

For instance, on a $300,000, 30-year fixed mortgage, if your credit score drops 100 points from a good 780 down to an OK 680, you'll pay almost $25,000 more during the life of the loan.

"It's not so easy fixing a credit report error. More than half of the people in our survey who tried were either rejected, ignored or faced some other roadblock," Stanger said.

To dispute a credit report, first tip: avoid companies that promise to fix your credit for a price. Put your request in writing to one or more of the three major credit reporting agencies, Experian, TransUnion and Equifax. Be sure to include proof of your identity and your full social security number.

For serious errors, Consumer Reports also said you may have to resort to hiring a lawyer. And remember to check your credit report regularly, which you can do free once a year with each of the three major credit bureaus.