Due to the recent high unemployment figures and the negative impact stemming from the economic downturn, more Americans are qualifying for special tax credits this year.
One of these tax breaks is the Earned Income Tax Credit, which refunds between $2 and $5,600 to consumers based on their earnings, marital status and the number of dependents they claim on their returns.
Likewise, many of these consumers are using their credit cards more frequently to meet their monthly bill payments. Some may have even opened up another credit line, hoping to take advantage of cash back and other incentives from lenders.
Because of these bad spending habits, this demographic faces a higher risk for credit score damage. This can be caused by late payments to lenders, maxing-out an existing account or simply a reporting error appearing within consumer files maintained by one of the three major credit bureaus.
However, contacting a credit report company can help clear up these discrepancies. By enlisting an experienced team of professionals to sort out errors, consumers could ensure they clear up their reports and start saving money on new card offers, loans and insurance policies.