There are various types of data that appear on credit reports such as credit loan debt, bill payments, loan information, and age of accounts. There’s just one piece of information that credit reports do not mention.
Recent studies show that Black people are far more likely to have disputes on their credit reports. Disputes could range anywhere from false reports of late payments, defaulting on loans, and much worse.
Neighborhoods where Black people are the majority, are three times as likely to have disputes on their credit reports, and these errors can cause a snowball effect.
Having errors on your credit report can cause you to potentially miss out on better financial opportunities, cause worse interest rates on loans and credit cards, or get you denied for a mortgage loan. The Fair Credit Reporting Act allows us to dispute these errors, but we must take it a step further than that.
The credit bureaus are not set up in our favor. Be proactive. Check your credit report at least once a month, and make sure that you practice good credit habits such as paying bills on time and controlling your credit card spending.