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February 22, 2021 /
Credit Reporting Errors

When Should You Dispute A Credit Report Error?

credit repair
Building credit takes years of promptness, timely payments, and financially responsible behavior. Don’t let a misreported account be the reason behind a rejected loan. Dispute every error to give your creditworthiness a massive boost. Here’s when you need to do so:

There’s an identity error.

A misreported identity is just as harmful to your credit profile as a delinquent inquiry. Common identity errors include a credit report mentioning the wrong name, phone number, or address. At times, the credit bureaus also mix up multiple consumers’ information either in a single or mixed file. As a result, the information on your credit report might belong to someone else. This could also happen when another person has the same name as you. This is known as a clerical error. You also need to challenge the errors if there has been a case of identity theft resulting from an incorrect account or you see a transaction that you don’t recognize. To get started, always audit the number of accounts recorded in your report. If an unfamiliar account uses your social security number, consult a credit report error attorney to mitigate any financial and legal risk. Gavel placed next to two law books piled on top of each other.

Outdated information

If you’ve already repaid a liability and the debt still shows on your credit report as outstanding, it’s an error. This happens when the credit bureau doesn’t have the most accurate and up-to-date information pertaining to your credit lines. As a result, your credit utilization ratio could also appear to be much higher than where it actually stands. Your credit utilization ratio is a measure of how much credit you currently owe versus how much is available to be used.

Reporting errors

Other than misreported accounts, there could be errors in the actual status of your account too. These include inaccurate defaulted payments and late payments, incorrect balance, incorrect credit limit, and incorrect dates. Ideally, the credit report shouldn’t mention discharged debt (loans that are seven years or older). Even the closed accounts should be labeled adequately. If you’re the authorized user of an account and are mentioned as an owner, it also qualifies as a reporting error. All of these factors significantly impact your credit score and overall creditworthiness. Whether you’re dealing with a few misreported accounts or an identity error on your credit report, the attorneys at Cook Law, LLC would be glad to assist We are offering our credit report dispute services in St. Louis. Schedule a free consultation now.