by admin /
October 2, 2021 /
Credit Reporting Errors
Credit Repair St. Louis
Finding out your credit score is not as good as you expected is stressful and frustrating. The interest rate for the home you want to buy is going to be unaffordable high. So your dream home just got a bit more expensive for you to buy. All because of your poor credit score. Most people are surprised by the fact their credit score went down by some points. Sometimes hundreds of points. A common reaction is “This must be some kind of a mistake”. And some of them are right. About 20% of consumers have some erroneous information on their credit reports. Incorrect information in a credit report may cause a lot of damage, so don’t ignore it. You have to react and fix it. Lenders and landlords use credit reports to calculate the credit scores of their potential clients. The credit score is responsible for the terms of your loan and the interest rates. The bottom line is as follows – a poor credit score will cost you extra through higher interest rates, a good or excellent credit score will save you money through better loan terms. The ultimate goal of credit repair is to improve your credit score. It is not an easy job to do, certainly, you can’t do it in a day. But it is worth doing it. You can save a lot of money on long-term loans if your credit score is excellent. The amount of the monthly house loan installment may vary in hundreds of dollars, depending only on the credit score. A lower credit score brings a higher amount of the monthly loan installment and vice versa. This means that if you have an excellent credit score, you pay less money every month for the same loan than someone with a low credit score.
How Does Credit Repair WorkCredit repair removes incorrect, inaccurate, as well as any kind of erroneous information from credit reports. You have the right, under the Fair Credit Reporting Act (FCRA), to dispute the information in your credit reports you find erroneous. Examples of tipical incorrect information are as follows:
- Identity errors result from your personal information errors. It is usually a misspelling or a typo or some similar mistake in your personal information. Sometimes your name is mistaken for the similar name of some other person and their personal data is listed as yours. If you were the victim of identity theft, there may be accounts on your credit report that you can’t recognize and you don’t remember having them opened. This is a potentially very complicated situation. You have to react fast to prevent further damage.
- Duplication errors occur when the same debt is listed several times under the different creditors’ and lenders’ names. This can happen when a lender or a creditor changes the name for some reason.
- Account-related misinformation is a common error appearing on credit reports. It may be the actual status of the account that is reported wrong. A closed account may be still listed as open. Also, there could be accounts where you have been paying monthly installments on time and the payments are listed as delinquent or late. Sometimes the problem with an account could be the wrong date when the account is opened or closed.
- Information too old to be included in your credit reports. Information about bankruptcies and other negative marks should be removed from your credit reports, usually after 7 years, but sometimes they stay there longer due to a mistake.