LOS ANGELES (PRWeb) — Over 100 million Americans are overpaying on their loans because of errors on their credit report. Worst of all, these errors are fixable and consumers don’t even realize it.
Eighty percent of Americans have an error on their credit report. Twenty-five percent of those errors are so bad that if the consumer applied for credit today, they would be turned down (2004 U.S. Public Interest Research Group Study, http://tinyurl.com/d2w5un). This is costing America billions of dollars per year and it is completely fixable!
Forty-six percent of Americans are missing at least one credit limit on their credit report (2004 Federal Reserve Board Study, http://tinyurl.com/d9dvlz), which could lower their credit score artificially.
According to My FICO, a person with a 720 credit score versus a person with a 659 credit score — only 61 points — will pay an ADDITIONAL 5.685% in interest rate … meaning the person with the 720 credit score will get an interest rate of 3% and you with a 659 will get an interest rate of 8.685% (http://www.myfico.com, April 6, 2009).
Sixty-one points can easily be lost in an instant, simply by having the “wrong” error on your credit report.
Errors on credit reports inadvertently cost Americans hundreds of billions of dollars per year and it is completely avoidable!
“There are two types of errors, High Priority Errors and Low Priority Errors,” says Philip Tirone, author of “7 Steps to a 720 Credit Score” (http://www.7StepsTo720.com). “Since statistically speaking we will always have an error on our credit report, it’s better to focus on High Priority Errors — the errors that have a 20-100 point impact on your credit score. Low Priority Errors sometimes do not affect your score at all.”
“Credit Literacy is the salvation to our struggling economy as it’s the money that people are wasting every month,” says Tirone. “By educating consumers on the errors, we could infuse billions of dollars into our economy, without a tax increase. This infusion would happen, year after year, forever.”
Examples of High Priority Errors: Active Collection Account that is listed more than once, someone else’s social security number, someone else’s name.
Examples of Low Priority Errors: Wrong date of birth, incorrect employer information, incorrect account information.
About Philip Tirone:
Philip’s book, “7 Steps to a 720(R) Credit Score” dispels the misconceptions around our credit scoring system and guides consumers who are struggling with Bankruptcy, Foreclosure, Short Sale, Divorce, and many other experiences that impact a person’s credit score.
Philip and his programs have been featured in the Los Angeles Times, The Wall Street Journal, Woman’s World Magazine, the San Francisco Chronicle, Bottom Line Magazine, and the New York Times bestseller “Secrets of the Young & Successful.” Additionally, Philip has been a frequent guest lecturer at UCLA Anderson School of Business and Management.
Contact:
Danielle Fairlee, DSF Communications
Danielle@dsfcommunications.com
(818) 346-7110
