IF this spring you received a notification from major credit bureau Equifax regarding your score – chances are it wasn’t accurate.
This affected millions of Americans applying for mortgages, credit cards and car loans, the Wall Street Journal reports, citing bank executives and people familiar with the situation.
For these groups, the credit scores were off by 20 points or more when issued by Equifax between March 17 and April 6.
That means your score could have improved or gotten worse — with the credit agency calling the issue a “coding issue” in a statement.
However, it was claimed that “there was no shift in the vast majority of scores” during the glitch period after “extensive analysis” was conducted.
“For those consumers who experienced a rating shift, initial analysis indicates that only a small number of them may have received a different credit decision,” Equifax added.
According to Equifax, fewer than 300,000 consumers have changed their credit score by 25 points or more.
But worst of all, the credit rating error was enough to affect interest rates, according to the Journal.
So if your credit score was lowered, you may have been offered a higher interest rate.
And that could serve as a double whammy — with the Federal Reserve’s multiple rate hikes over the past few months.
You may have been affected if you applied for a loan from the following financial companies:
- Wells Fargo & Co.
- ally finance
- JPMorgan Chase & Co
Also, this isn’t the first time Equifax has addressed a major consumer issue.
In 2017, a break-in at Equifax exposed the personal information of nearly 150 million Americans.
The US has charged four Chinese military officers in connection with the cyber attack.
However, Equifax claims that the credit score error has been fixed.
“We are working closely with lenders and are accelerating the migration of this environment to the Equifax Cloud, which provides additional controls and monitoring that will help identify and prevent similar issues in the future.”
Equifax Cloud aims to empower customers by providing real-time insights.
The credit bureau intends to improve its cloud footprint environment from 50% to 80% by the end of the year.
Equifax did not respond to The Sun’s request for comment.
Meanwhile, the move comes as millions of Americans get better credit thanks to wiped-out medical debt.
Also see what happens to your credit card when the Fed raises interest rates.
https://www.the-sun.com/money/5928261/credit-scores-wrong-loans-rates/ Millions of Americans Have False Credit Scores When Applying for Loan, Sending Interest Rates Soaring – Are You Affected?