How Common Are Credit Report Errors?

A credit report is highly important in regards to how eligible you are for certain loans and credit cards, so when you notice a mistake it can lead you down a path of worry. You may initially think that it can’t be a mistake and that you are at fault. However, it is possible that the mistake is in fact that and not your fault.

Credit report mistakes are more common than you think, Although you will have to prove it is in fact a mistake. In fact according to the FTC (federal trade commission) 1 out of 5 people experience credit report errors.

Like mentioned above an error can impact your credit score in a negative way so it is with high importance that if you notice an error that you try to resolve it as quickly as possible. A credit report basically manages your financial health.

To prevent any financial hardship you may want to apply for your free credit report now to ensure no further mistakes are made. You will also be able to manually check through your report to find any errors that may have impacted your credit score negatively.

Mistaken Accounts

Many mistakes can come from clerical errors, You should look to see how many open accounts that are recorded in the report. A loan or credit card may have been taken out under your name by either an error or identity theft. These errors happen when another person has the same name as you do.

If you find that this is the case for you you will want to notify your creditor immediately as it can negatively impact both your credit ratio and your credit rating.

Unfamiliar accounts can also show that somebody may be committing identity fraud against you, from either your name or social security number. If you again think that this is the case you should immediately contact your creditor and make them aware of this so it will not impact your credit score and you can catch the thief much sooner rather than later.

Recovering from this type of damage can be a very long process so it is best to get it sorted right away to limit any financial or legal risks that may ensue from a crime such as this. Obviously if you can prove that it is identity theft you will not be at fault for any of their spending.

Personal Information Errors

Personal Information ErrorsAt times, credit bureaus can confuse a consumer with another. Sometimes the reports even list the wrong addresses, these are often caused because of personal information errors. Some of those are, an incorrect name, incorrect middle initial, a misspelling of your name or even incorrect contact information like a phone number.

You should update your personal information in scenarios such as if you have moved to a new house, get a new phone number or if you change your name.

Also if you have filed for divorce and are someone who has joint accounts with their former spouse you should get your name removed from the account so you don’t run the risk of incurring any debts in the foreseeable future.

Personal information eros are not difficult to erase but very important that you do, it will simply take you calling your creditor and providing them with your correct information to resolve the situation resulting in you having to pay for a mistake that you perhaps didn’t make.

Errors like this can happen all the time so it is nothing that you need to worry yourself about as long as you can prove that it was a mistake.

Account Reporting Errors

Account reporting errors can include missing payments or perhaps late payments and can be very alarming as they can hugely impact your credit score for the worst. If you ignore these errors you could end up defaulting the payments.

Some of the main accounting errors that will happen are as follows, an opened account that is reported as closed and vice versa, incorrect dates of late payments, incorrect balance, incorrect credit limit and incorrect dates on opening and closing an account. All of the above can be an error that will need to be sorted.

If you feel that the above listed errors apply to you then you should try to deal with them as quickly as possible to avoid damaging your credit score. Some of these errors are easily fixable by contacting the agency and making them aware of the error.

If you can prove that they are in fact mistakes then your creditor is required by law to fix the issue. A bad credit score will impact any loans or credit cards that you apply for as you may end up being charged very high amounts of interest which may not even be your fault due to errors that can be made.

In Summary

Credit report errors are more common than you think and are often very easily fixed if you can prove that they are in fact errors that have been made from your agency. Like stated above the three most common errors are, account reporting errors, personal information eros and mistaken accounts.

Some are easier to prove than others. If you believe that you are a victim of identity fraud then you should contact your creditor immediately as this can hugely impact your credit score and be a very long process to sort out.

These errors can lead to a damaged credit ratio or credit score which will hugely impact the interest rates on any loans that you may need or when you are applying for a credit card. Like mentioned above the issues are often easily resolved but you will need to start the process of that as quickly as possible.

As long as you can in fact prove that they are errors, your creditors are required by law to fix them so that your credit score will not be impacted negatively.