A number of HSBC credit card customers may have experienced credit score damage as a result of a credit reporting glitch by Experian.
According to MSNBC, a number of consumers found that the last two digits of their credit limits had been knocked off of certain credit report items, resulting in the appearance that those individuals had exceeded their allotted credit amounts.
The decline in credit limits resulted in many customers' credit utilization ratio to skyrocket, a factor that accounts for about 30 percent of a consumer's credit score. Experts advise credit users to keep their ratio below 30 percent; however, the credit reporting error resulted in some ratios exceeding 100 percent, the news source reports.
Experian said the error, which occurred on April 1, 2011, was corrected within three days.
These types of errors may happen at anytime, and in many cases, credit card companies or debt collection agencies are responsible for the reporting error. Consumers may be able to quickly rectify any unfair or inaccurate items on their credit report by working with a credit repair company. Professionals at these firms often have the professional experience to make sure credit companies are reporting information in compliance with federal laws.