Common Credit Report Errors
June 19th, 2009, Written By: Kerri Randall
You know you should be keeping an eye on your credit history, and you know that you can receive a free copy of your credit report from each credit bureau. But what exactly do you do when you get it? Your first assignment is to check for errors. Research will provide different percentages, but it’s fair to say that the majority of credit reports do contain errors, and about 25% of them will be large enough to damage your credit score. Even small ones can hurt your score, though, so you’ll want to check your report carefully.
When you find accounts that you recognize, make sure little facts like your credit limit and the date the account was opened are correct. If those have been altered without your knowledge, it could be a sign of fraud. Make sure that the account is only listed once on the same report, as a double listing will simply appear to be a separate account when creditors check your history, and this could hurt your score.
Have you updated your personal information? If you have a new address or new name and haven’t reported it, your credit history will be incomplete. New accounts that might boost your score may not be listed, and when a creditor checks your history, you might not be linked correctly with older accounts. Perhaps you share a name with someone in your family, or your name is fairly common. Make sure only your information is on your report and hasn’t been mixed with your name twin. If you are a Jr. or a Sr., make sure this is listed correctly.
Professional opinions seem to differ regarding closed accounts that are still listed on your report. Some say to remove them because they are hurting your score, but others say this listing can actually help your score. Consider your own individual information. If your history is positive and your score is high with a closed account listed on your report, you may want to consider leaving it alone.
Of course, if you find larger errors such as an account or two that you know you didn’t open, a report of nonpayment on a loan that you paid off, etc., this indicates fraudulent activity and you need to take action right away. The longer you wait, the more fraudulent activity you are subject to. This goes for all errors, large or small. Removing errors can increase your score 20-30 points right away, and that might be enough to bump you into the next highest category and help you begin qualifying for better interest rates and credit limits.
Categories: Credit Report Dispute
