Top 10 Most Common Errors in Credit Reports
Errors on credit reports are common. In fact, the Federal Trade Commission found that five percent of consumers had errors on one of their three major credit reports. It may not sound like a huge percentage, but it happens often enough, and you deserve to know what errors to look for. These mistakes can have a huge impact on your credit score, which can ultimately keep you from receiving loans.
Names get mixed up on credit reports all of the time. For example, your legal name could be “William,” but other information indicates it is “Bill.” Your name needs to be consistent across the board. Names are not the only personal information that gets confused either. Addresses, social security numbers, and other contact information can get mixed up and can lead to a giant mess.
Personal History Information
Information regarding payment history and even bankruptcies can be filed and reported incorrectly. Inaccurate credit information has a huge impact on your overall score, so you need to make sure that the credit history that is shown on your report is consistent with your records.
Marital status can cause a mix up on your credit reports as well. If you had been married previously, and then got divorced, your former spouse’s information and account data could be mixed up with yours. Make sure that all information is current and that prior marriages are not impacting your score based on incorrect information.
Incorrect credit information can make it difficult for a person to obtain a mortgage, credit card, auto loan or other lines of credit.
When accounts are transferred, things can get mixed up and it could ultimately hurt your score. For instance, if you have transferred an account to a debt collector, that report could end up showing multiple dates for when the account was listed as “delinquent.” Make sure that your transfers aren’t hurting your score and keep any documentation that can back up your claim that a mistake has been made.
There is a legal deadline for removing accounts from your credit report. If you removed them before the account deadline, they may still show up past the legal deadline by accident. With all other aspects of credit, make sure to save any documentation relating to this situation to prove that you removed accounts before the deadline.
Copies of Accounts
Make sure that your credit report only shows one instance of an account. Sometimes there will be multiple copies of one account, and if it is a negative account, it can hurt your score. When you are looking over your report, make sure that your accounts are only displayed once and the information regarding the history of that account is up-to-date.
Payment status contributes to your overall credit score, and if there are recorded delinquencies that have been taken care of, you need to make sure that is consistent with your credit report. If you have made an effort to be “current” on all of your payments, you need to make sure that information is shown on your credit report. If you find that your current payments are still showing a “delinquent” status, a dispute letter needs to be sent immediately.
Closed accounts can be tricky. If you closed an account, it could end up looking as if your creditor was the person who closed it. Correcting these notations to show that you are the one responsible for closing the account makes a difference.
Failed Delinquency Reports
When you make the monthly payments necessary to get out of “delinquent” status and become current, you need to make sure that information is recorded and shown on your credit report. There are times where credit reporting agencies do not follow up and record when delinquencies are remedied. Delinquent status hurts your credit score, so it is important to get it removed from your credit report.
Look for these errors and then make sure they are corrected if you find any. You don’t need incorrect information impacting your credit score.
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