Which statement about credit reports is NOT true?

The statement that errors in credit reports are rare and difficult to dispute is the one that is not true. In reality, errors in credit reports can occur more frequently than one might assume, and they are not always easy for consumers to resolve. This is supported by various studies showing that a significant percentage of credit reports contain inaccuracies. Disputing these errors often requires following a formal process, which involves contacting the credit reporting agency and providing documentation to support the claim. This process can be cumbersome and time-consuming, which is contrary to the notion that disputes are straightforward.

In contrast, the other statements provide accurate depictions of credit reports. Tri-merged credit reports, which compile data from all three major credit reporting agencies (CRAs), do indeed provide a comprehensive view of a consumer’s credit history, making them more reliable for lenders. Additionally, credit reports are required by regulations to exclude certain personal information such as sex, race, or religion to ensure fair lending practices. Furthermore, lenders have the autonomy to set their own underwriting standards, which allows them to determine how they evaluate credit report information in their decision-making processes.