What Are The Three Common Credit Report Errors & How to Fix them?
A credit report error can harm your credit score by lowering it and negatively influencing the lender’s decision to issue you a new line of credit.
According to a US Federal Trade Commission (FTC) survey, one of every five American consumers had mistakes in their credit reports. This inaccuracy tends to make individuals less creditworthy or alter the interest rates that banks and financial organizations offer them.
The Most Common Credit Reporting Errors.
In general, a credit report error is a risk to your financial health. As a result, many consumers resort to requesting a copy of their credit report to check for potential credit errors.
You should keep these three common credit reporting errors in mind when reviewing your credit report.
Personal Information/Identity Errors
Credit reporting bureaus collect data from billions of transactions to track and correctly report their customers’ credit histories. They can, however, occasionally misinterpret one client’s complaint for another or display the wrong address for a customer.
Personal information errors that could occur include,
- Having your name misspelled
- Having someone with a similar name show up on your account
- Incorrect accounts resulting from identity theft
- Having an incorrect name or middle initial,
- Incorrect contact information.
Remember to update your basic personal information whenever you relocate or alter your name or phone number. In addition, if you are now divorced and have a joint account with your ex-spouse, consider deleting your name from those accounts to prevent incurring debt from them in the future.
Incorrect Accounting Reporting Errors
The actual state of your accounts may contain inaccuracies. The most common mistakes that could occur in your account include the following;
- Incorrect date of last payment or date account opened.
- A consumer being listed as a primary account holder rather than an authorized user, or vice versa
- Outdated balance or credit-limit information
- Same debt being listed more than once (possibly with different names)
- Reinsertion of inaccurate information after it was disputed and corrected
- Timely account payments reported late or delinquent
It is important also to note that discharged debts should be deleted from your credit report and cases of bankruptcy should be disclosed. Furthermore, if present, these accounting errors should be addressed as soon as possible before they negatively impact your credit score.
Mistaken or Fraudulent Accounts
Aside from inaccurate account reports, there are times when a retail credit card or loan is opened in your name, but you were not involved in it. This could be the result of a clerical error or identity theft.
This is a clerical error when another customer has the same name as you. You can easily detect this if someone else’s information appears on your report. Again, errors like this should not be neglected because they might hurt your credit utilization and diminish your credit rating.
When someone intentionally steals your identity to open a new account, it is called identity theft. This can be by way of using your name or your social security number. The process of repairing the harm caused by this crime can take a long time and is complex. But if you believe you are a victim of identity theft, contact your creditor as soon as possible.
Steps In Disputing Credit Report Errors
Rather than fretting over a poor credit score, you can dispute a credit report error by
- Ordering a copy of your credit report:
- Reviewing the report for possible errors
- Contacting your credit provider or the credit bureau if you notice an error.
You can use these three methods to dispute errors with credit report bureau.
|1.||On Experian’s dispute center, fill out the dispute form. Click on ‘Start a new dispute” and then add the reason for the dispute.||File an online complaint through the Equifax correction portal|
|2.||Call the Experian customer service directly at 866-200-6020. This might take more time due to waiting for customer agents.||Reach out to the Equifax customer service on the number 866-349-5191 in order to see if your issue can be resolved over the phone|
|3.||Write a dispute letter describing all the inaccuracies on your credit report and why they should be corrected or removed. The letter can then be mailed directly to Experian.||Mail a dispute letter to Equifax outlining the errors and the corrections Equifax made. To verify your identity and make the changes, Equifax will need your identification and follow-up documents if you send Equifax a letter.|
Do You Have One Of These Errors?
A credit mistake on your report might severely harm your financial health. However, you do not have to go through the trouble of resolving everything on your own.
Imax Credit is your greatest bet for resolving a credit report issue, improving your credit card application credit score, or getting a vehicle loan. With our high-quality service, we ensure that everything is taken care of.
Place a call today for a free consultation with one of our credit repair experts.