What are the Hidden Risks of Credit Washing

Credit report history is necessary to calculate a consumer credit score, which is a prediction of consumer credit behavior that can help unlock new financial opportunities. When a consumer's credit history isn't helping them unlock the opportunities they desire, taking positive steps to improve their credit is a worthwhile endeavor. However, the process of improving credit usually takes time. Unfortunately, there are bad actors promising quick fixes--this is known as "credit washing."

What exactly is credit washing?

At its core, credit washing is the practice of abusing FCRA-established processes created to protect consumers to scrub legitimate, but negative, information from a credit report. There are several unsavory practices that could be used for credit washing, which include falsely claiming identity theft in an attempt to have specific, legitimate tradelines removed from the consumer's credit report.

What are the risks to consumers from credit washing?

Credit washing comes with risks to consumers. The greatest risk is the cost to consumers in money and time without an outcome that will address their issues. Additionally, if a consumer's disputes are deemed to be frivolous and irrelevant, the credit bureau can legally stop investigating the claims entirely. Third, when organizations are inundated with baseless claims, it takes longer for them to assist other individuals, including those who might be the true victims of crimes such as identity theft or human trafficking. Consumers should be mindful of credit repair scams as there is no such thing as a 'quick fix' when it comes to credit. Real credit improvement takes time but it is permanent and legitimate.

What can consumers do to improve their credit?

Equifax recommends that consumers proactively monitor their credit reports so that they are more aware of what lenders may see and so that they can detect any potentially inaccurate or incomplete information provided to the credit bureaus. A consumer can access their credit report for free with a myEquifax account as well as from Equifax, Experian and TransUnion at no charge every week through AnnualCreditReport.com

If a consumer reviews their credit report and finds their information to be inaccurate or incomplete, they may file a dispute online but should also do so with each of the three U.S. Nationwide Consumer Reporting Agencies. A consumer can file a credit dispute with Equifax via MyEquifax.

Additionally, the myEquifax™ mobile app for Android™ and iPhone® - designed to help people better understand their current credit position and empower them in their financial lives - offers consumers a convenient way to monitor their financial health from their mobile devices. Available free of charge to all U.S. consumers through the myEquifax™ mobile app is an interactive credit score planner, Optimal Path™. The solution integrates with each consumer's current Equifax credit profile to provide specific tasks that they can execute on within the next 30 days to help improve their VantageScore® 3.0 score and reach their target credit score goal. The solution creates customized 30-day action plans, enabling the consumer with the ability to meet their individual, unique financial goals faster.