Many consumers complain about wrong information on credit reports

Credit reports are an essential part of consumers' financial lives, as they are needed to qualify for most types of lending.

Oftentimes, these reports contain errors, and the Consumer Financial Protection Bureau recently released information that said 21 percent of consumers said they had information on their reports that was erroneous.

Additional issues with credit reports included problems with the reporting for account status, the inability to get a report or score or their credit report being used improperly.

One potential cause of misinformation could be identity theft. In these types of situations, finances can be put on hold. Short-term lenders need to be the first line of defense against this type of crime as thieves typically attempt to open lines of credit with stolen personal information.

With identity theft occurrences increasing in frequency, employees at credit reporting agencies need to be ready to assist customers, as any false information on their credit reports could be extremely damaging.