Practicing Consumer Law has opened my eyes to many scams. Credit reporting is one of the biggest scams out there. The accuracy of your credit report is entirely up to you. You are the only one who cares how accurate your credit reports are, and here is the reason why. If you are going to apply for credit, you can bet your last dollar that the creditor who pulls your credit report is going to be looking for any reason to charge you the highest interest rate possible.
Let's use car sales as an example. The car dealer is going to make some money on the sale of the car. This is usually in the form of a mark-up on the price the dealer paid for the car and the price he or she is going to sell the car for. Let's say they paid $5,000 for a car at the auction, and you agree that you will pay $6,500 for the car. The dealer will make $1,500 on the mark-up.
At the same time, if you are going to finance all or a portion of the transaction, the dealer is going to make money either carrying the paper (buy here - pay here) in the form of interest on the loan, or he or she is going to sell the paper (Ford Motor Credit or some other lender) and make money on the origination of the loan.
If the dealer is going to sell the paper, the dealer still has a financial interest in getting you to agree to pay the maximum interest so they can increase their profits.
At the same time, they have to make you believe that you are getting a good deal.
With this all in mind, your credit reports are the key to the transaction. If the dealer can find any flaws, you are going to get a higher interest rate. They are going to sound sympathetic to your cause and make you think there is nothing that they can do, as you sit in the new car you so desperately want. They know you have already texted pictures of the car to everyone in your address book, and everyone expects to see you in the new car, etc, etc.
So, you are going to be paying more for the car than it is worth because of something on your credit report.
Now have I got your ear about how important the information on your credit report is?