The Most Common Credit Reporting Errors
Posted: Wednesday, December 21, 2016
Considering one in four consumers has errors on their credit reports, checking your report is more important than ever. Your credit report can affect your financial well being and ensuring its accuracy will guarantee that you get the best possible interest rates and credit available to you. There are several credit reporting mistakes that are more common than others. Below is a list of the top three mistakes to look for.
1. Incorrect Account Information
The first most common mistake found on credit reports is incorrect account information. Sometimes your creditors provide information to the credit reporting agencies that is inaccurate. Either the creditor sends wrong information or the credit reporting agency gets the information wrong on their end. Make sure to review each of your accounts to ensure they are reporting accurately. Examples of inaccurate account information may include, an “open” notation on a closed account; inaccurate credit limits; late payments; and unpaid balances.
2. Inaccurate Personal Information
The second most common credit reporting mistake is inaccurate personal identifying information. There are millions of consumers for each of the three major credit reporting agencies to report about, personal information about people with similar names can merge. Sometimes the inaccurate information can be i a wrong street address, and other times the information can be detrimental to your report, such as an inaccurate name or social security number. Make sure to review your report to ensure all information belongs to you and is correct. A wrong address should not be taken so lightly though. Incoming data of accounts from creditors is matched up with a consumer's report based upon name and address. Thus, an incorrect address can potentially lead to the placement of another's account on your credit report.
3. Fraudulent Accounts
The third most common credit reporting error is fraudulent accounts. Fraud on your report is the most serious credit reporting mistake. Fraud means that someone is using your personal information to open accounts in your name. If you have fraud on your report, you will need to alert the police and the credit reporting agency. Submitting a fraud alert on your report will stop future accounts from being opened without the creditor contacting you first.
In the event you see an error on your report, you need to contact the credit reporting agency to dispute the account. Under the Fair Credit Reporting Act (“FCRA”), the federal statute enacted to protect consumer rights, you are entitled to dispute inaccurate information on your credit report and request an investigation. Upon receipt of notice of inaccurate information, the credit reporting agency must contact the furnisher of information and conduct an investigation and respond to you within 30 days.
If you have inaccurate information on your credit report and believe your rights have been violated under the FCRA, contact SmithMarco P.C. for a completely free case review.