More room for credit report errors due to credit score changes

Many banks and credit card issuers are changing the ways they evaluate consumers before approving a loan application, and a credit repair company may help consumers navigate this changing terrain.

This increased scrutiny includes analyzing how often consumers switch telephone lines, residencies and in what manner individuals receive their earnings. These factors are assessed in a Deposit Behavior Score, which also analyzes checking and savings account activity.

"These scores are like black boxes," Chi Chi Wu, a staff attorney with the National Consumer Law Center, told The Minneapolis-St.Paul Star Tribune. "No one knows what the models are and exactly how they're being used, but the information can have a tremendous impact on people's lives."

As a result, it is more important than ever for consumers to check their credit reports to confirm basic information and to enlist a credit lawyer in case they find an error. According to recent data, up to 80 percent of these documents contain mistakes, and finding and removing even a small item, such as an improper residency, could have big benefits.

By working with a credit repair company to dispute unfair negative marks, consumers may be able to speed up their credit repair process and improve their credit scores.