The Truth About Credit Bureaus and Inaccuracies on Your Credit Reports

It’s a well-known fact that nearly 80% of credit reports contain inaccuracies. Despite advancements in technology, these millions of errors persist. This situation begs the question: why aren’t these errors being fixed?

One key reason lies in the profitability of these inaccuracies for the credit bureaus. The major credit bureaus—Equifax, TransUnion, and Experian—own some of the most popular online credit monitoring services. These services, accessible through websites like,, and, generate substantial revenue from consumers seeking to monitor their credit scores.

But how do the credit bureaus capture your business, especially if you’ve always paid your bills on time, have no credit card debt, and have never been declined for a loan? The answer lies in the potential for errors in your credit report. These errors can occur due to a variety of reasons, such as having a similar name to someone else, being a junior or senior, or sharing some digits of your social security number with another individual. These factors can lead to your credit report being mixed with someone else’s, resulting in a poor and inaccurate credit report.

With the fear of being turned down for an unsecured business loan, asked for a high down payment, charged an exorbitant interest rate, or even paying higher premiums for insurance policies, spending $9.99 – $29.99 per month to monitor your credit reports and catch errors might seem reasonable.

As an experienced credit specialist, I believe the “Big 3” deliberately maintain these errors to instill fear and drive subscriptions to their online credit monitoring services. According to a U.S. Census report from July 2009, the U.S. population was estimated at 307,006,550. Another statistic by TransUnion states that only 35% of Americans have a good FICO score above 700. This implies that over 100 million Americans might never need online credit monitoring services if not for the fear of inaccuracies on their reports. This scenario translates into a potential market worth an estimated $1.5 billion.

While profit is a fundamental aspect of business, the actions of the credit bureaus raise ethical concerns. The extent of their practices could fill an entire book. Stay tuned for more insights and information in our future posts.