The Federal Trade Commission has issued a report on credit reports. About 20% of them are inaccurate.
The FTC did not have to conduct a study. Anyone with a statistical background knew that 20% are erroneous. It’s Pareto’s law. About 20% of the worst examples of anything provide 80% of the problems.
What if your FICO score is too low? It can keep you from getting a low-interest mortgage. It can keep your credit card rate high.
If your FICO score is 800 or higher, you are in good shape. The median score — half above, half below — is 723.
How can you find out? Once a year, you can request a free credit report from the three rating services.