A credit report is probably the last thing that you would be excited to read on. However, for any kind of credit or debt, a credit report is the foremost priority. It will make your debt journey easier and you will be open to various options and choices. A credit report and credit score are what the loan provider will see to identify you as an asset or a risk. A good score will give you easy approval, but a bad one will make your loan process lengthy and you may face rejections. You must count on your credit report and keep yourself updated about where you stand in terms of finance. Now, there can be credit report errors that can low down your score without your mistake and knowledge. It is important to check your credit report and identify all the errors that have come up.
11 Common Credit Report Errors
- Mistakes in your identity details are very basic but most important. You need to check for any error in your name, contact, age, address, and other primary details. It is important that your details are updated and there are no errors, even the smallest ones. Look into every minute detail so that it is easy to detect the error.
- There can be a mix in the account based on the wrong name. Your account may have been mixed with a person of the same name. If it has happened, you may either get a very good score or a bad score. You need to check that you have your account and the report belongs to you. Don’t take responsibility for anyone else’s account. Check for the details to confirm the information.
- You may find that an open and active account is reported as a closed one. It may affect your score as account closure can drop your scores. Check the details of all your present and past account.
- Are you just an authorized user but you see yourself as an owner? If you see any such errors in your account you need to take action for it.
- If you find your account as of late or as delinquent despite paying bills on time, you need to act. Late payment details can drop your credit score without you being responsible for this. Make sure you take account of this and necessary measures.
- Incorrect details and date of account opened, date of last payment, or date of first delinquency needs to be taken care of. You cannot ignore any such mistakes that reflect negatively in your account. Make sure you are looking out for these mistakes and taking action.
- You can find an account with an incorrect account balance. If your account balance does not match with the credit report, you need to report it.
- If you find that there is a credit account with the wrong credit limit you need to act immediately. You cannot delay such errors as that can put a negative impact on your credit score. Make sure you are looking for errors in balance and limit.
- The same debt is listed more than once. If one single loan is listed multiple time, this can be a big mistake and causes negative credit score. You need to take action immediately if you find that one particular loan is shown many times in your credit report.
- The unknown account in your name can be a common error but you need to work on it. If you are not being able to recognize any credit card, current account, loan, or saving account in your name, you need to report it.
- You may find the unknown transaction in your account that you have not done. If you find any fraudulent activity on your account you need to report it without any wait. Take a good inspection about all your transaction and then report.
How to Fix Credit Report Errors
- Notify and contact the credit bureau about the mistake, either through an online website or by phone. You can write an email or a letter. The contact information of the credit bureau should be available in your credit report. This should be done on an immediate basis without a wait.
- Explain what is the error and why is it an error. You need to add a significant amount of information so that they can detect the error.
- Include your contact information so that the credit bureau can get back to you for any information or knowledge.
- The dispute gets investigated. If it is found that the errors are genuine, they will be fixed with the right information. This will not happen overnight and you may have to give a good amount of time to make sure it happens.
Check credit score free and stay updated. You need to be aware of your financial status. If you keep checking your credit score regularly you can detect any action that you find is not right.