It is a fact of life that everyone is going to make a mistake and credit bureaus make mistakes to. In fact, according to a study conducted by the Federal Trade Commission, one out of every four credit reports contained some type of error.
These errors include everything from a minor mistake about an address to some oversights that are quite outrageous. When you are studying your credit report it is important to know some of the common mistakes that are found and why you can do about them.
These mistakes can be sinking your credit score, so it is important to find them quickly and get them taken care of. Here are 3 credit report errors to look for in your credit report.
There are 3 major credit bureaus that each maintain their own database of information about consumers. The credit bureaus are TransUnion, Experian, and Equifax. The databases of these companies include personal information, consumer data, payment history, and account information. All of this information is used in your credit report.
There are times when one or all three of these reporting agencies will get some of your information wrong. Some of the errors are quite minor such as having your street address incorrect. While this is annoying, it is not likely to harm your credit score.
However, there are times when identity errors are more serious. For example, if your name is mixed up with another person’s, you could end up with some of their accounts on your credit report. This can cause a positive or negative effect on your credit score, depending on that person’s payment history.
There are times when the lender or bank that provides information to the credit reporting agency will simply get information about your account wrong. For example, the wrong credit limit could be displayed, your mortgage origination date could be wrong, or your vehicle loan could be showing up as open, when it clearly has been closed.
Make sure to look closely at all of your accounts so that you can fix any errors that may occur in your account details.
Perhaps the most serious error that is found on your credit report are fraudulent accounts. This means that someone has stolen your identity and used it to open up an account in your name. If you find a line of credit on your report that you did not authorize, you will want to move quickly in order to get this corrected.
It is important to make sure that you contact the reporting agency quickly when this occurs so that the imposter will not be able to open up any more accounts. You should put a freeze on your credit report and keep it there until you have taken the steps to prevent this from happening again.
When it comes to your credit report you want to make sure that you check it thoroughly for errors. Mistakes are made and these mistakes can be quite costly if you do not take care of them right away.