Many people will experience errors on their credit reports at some point in their lives.
If you find errors in your credit report, it is essential to rectify them as soon as you spot them to ensure they do not harm your credit and future.
By utilizing the three main credit bureaus, Experian, Equifax, and TransUnion, you can view your credit report regularly to ensure that your report is correct. While you go through your report, look for these five common errors.
- Incorrect Personal Information
One of the most common mistakes people find on their credit reports is errors in their personal information. This might be a misspelling of their name, an incorrect number in their address, or a wrong birthday listed. No matter what it might be, don’t ignore it.
Incorrect personal information could lead to future credit issues, so it is essential to remedy the situation as soon as possible.
- Incorrect Account Reporting
When you assess your credit report, check for issues such as accounts that claim to be open when they should be closed, accounts that claim to have late payments when they shouldn’t, or incorrect payment dates. You’ll also want to see if there are any accounts on your report under your name that you did not open yourself.
These errors could not only indicate that reporting companies have your information wrong, but they could also be a sign of possible identity theft.
- Old Accounts Still Being Recorded
Old debts and bankruptcies will appear on your credit report, but they should not still be there after a certain amount of years. If you still see bankruptcies that you conducted over seven years ago on your current credit report, it could be because they were reported incorrectly or because the company needs to be tapped on the shoulder to update its records. Depending on what they are, old accounts should not still be reading on your credit report.
- Balance Errors
Balance errors are another common credit report error that many consumers find. If your credit report shows an incorrect current balance or credit limit, it could be because the credit companies, banks, or financing companies are reporting your information wrong.
Balance errors can lead to more serious problems when applying for loans or obtaining additional lines of credit.
- A Mixed Credit Report
Looking at your credit report and seeing someone else’s personal information or accounts on your credit report could be a sign of a mixed credit report. It is common that those with similar names might get mixed up by the reporting companies.
However, a mixed credit report might also be a sign of possible identity theft. Thieves will utilize your credit to open accounts and take out loans, so if you start to see items on your credit report that you did not create, it is best to dispute them as soon as possible.
How Errors on Your Credit Reports Could Have Occurred
Errors on your credit report could happen for a multitude of reasons. For one, errors can happen because the credit companies input the wrong information. Credit companies are provided information from furnishers, so it could likely be that information got skewed somewhere down the line. If information is wrong at any level, it will be written into your credit report without anyone knowing.
Errors can also appear because of identity theft. If you are the victim of identity theft, your credit report will show a slew of errors as the thief opens accounts and claims to be you in their nefarious actions. Identity theft can cause significant issues within one’s credit report and financials, so if you spot strange errors on your credit report, you must report and dispute them quickly.
How to Fix the Errors on Your Credit Report
To correct the errors on your credit report, you must take the time to dispute the errors with the credit bureau, Equifax, Experian, and/or Trans Union. You can dispute the information through mail or directly to their company through their website.
When you do this, you should include as much information as possible about the incorrect information, what exactly is wrong, and what the correct information is. Outlining exactly what needs to be fixed is best to ensure that the companies understand the situation and properly remedy it within the allotted 30-day period.
If you have been the victim of identity theft, there are some additional steps you will need to take to fix the errors on your credit report. Firstly, you will still need to dispute the claims to the credit reporting companies and furnisher, but you will also need to report the identity theft to the Federal Trade Commission, Identitytheft.gov. There is a fraud affidavit at that website that should be included in your disputes with the credit bureau. You should also report the theft to your local police department and include that report in your disputes.
The credit bureaus have 30-45 days to investigate and fix your credit report. If they fail to correct the inaccurate information, contact a consumer law attorney to ensure your disputes are heard and properly remedied. If you have further questions or are not being listened to by the credit bureaus, contact the team at Stecklein Robertson Law.