NEW YORK (MainStreet) — Free credit monitoring service Credit Karma launched an online dispute center today. Whereas in the past, disputing items on your credit report meant going to each credit reporting bureau, as well as the original creditor and third-party collection agencies, you can now initiate disputes right through Credit Karma.
Fully one-third of consumers have never checked their credit report. What's more, a significant percentage of credit reports have mistakes on them -- as many as 42 million, comprising approximately 25% of all consumers. This means that many customers checking their credit reports for the first time will encounter mistakes. Credit Karma is making it easier than ever to fix these reporting errors.
The process allows consumers to begin making disputes about their credit report with just a few clicks. After sending a dispute through TransUnion, all communication takes place through Credit Karma. This eliminates the need to send multiple letters via snail mail, file reports through multiple websites and, in extreme cases, hire a third-party consumer protection agency to represent you.
As credit reports impact consumers' ability to borrow money and the rates at which it is lent, Credit Karma’s new service will be a boon to consumers with mistakes on their credit report. Mistakes on your credit report can account for significant depression of your three-digit credit score. What's more, when lenders pull more detailed reports they’re likely to consider negative reports even more heavily than the score itself.
--Written by Nicholas Pell for MainStreet