Did you know that roughly 1 in 4 consumers has an error on their credit report? This is why it is important to remember to occasionally check the information contained in your credit report. Your credit report can affect your financial well-being, making it all that more important to ensure its accuracy will give you the best possible interest rates and credit options. There are a few credit reporting errors that are more commonly made than others. In this blog, we talk about 3 common credit reporting mistakes you need to be aware of.
Mistake #1: Incorrect Account Information
The first most common mistake people find on their credit report is incorrect information about their accounts. Sometimes, creditors will provide inaccurate information to the credit reporting agencies. This usually happens when the creditor sends wrong information or the credit reporting agency incorrectly enters the information they have been given. Make sure you review each of your accounts to see that they have been accurately reported. Examples of inaccurate account information include:
- An “open” notation on a closed account
- Inaccurate credit limits
- Late payments
- Unpaid balances
Mistake #2: Inaccurate Personal Information
The second most common error seen on credit reports is inaccurate personal identifying information. With the millions of consumers that each of the three major credit reporting agencies are responsible for reporting about, personal information for people with similar names can sometimes end up merging together.
Sometimes the inaccurate information can be a wrong street address, while other times the information can be far more detrimental to your report. For example, an inaccurate social security number or annual income can have major consequences on your financial standing. Check your report and make sure the information belongs to you and is correct. While a wrong address might not seem like a big deal, it can potentially lead to another person’s account being added to your credit report.
Mistake #3: Fraudulent Accounts
The third most commonly reported error found in people’s credit reports is fraudulent accounts. A fraudulent account is a serious credit reporting mistake that can substantially affect your credit rating. Fraud occurs when someone uses your personal information to open accounts in your name. If you find fraudulent accounts on your credit report, you will need to alert the police and consult with the credit reporting agency. Submitting a fraud alert on your report will prevent future accounts from being opened without you first being contacted by the creditor.
How Do I Fix a Credit Reporting Error?
If you come across an error when you are checking your credit report, you need to contact the credit reporting agency to dispute the account. Under the Fair Credit Reporting Act (FCRA), you have the right to dispute and request an investigation for any inaccurate information you find on your credit report. After receiving your notice of inaccurate information, the credit reporting agency must contact the furnisher of the information, conduct an investigation, and respond to you within 30 days.
Let Us Help You Today
If you are having trouble disputing a credit reporting error, our New York City debt collection defense attorney can help you uphold your rights. In fact, we can help you resolve your credit reporting error free of charge. At The Law Offices of Abel L. Pierre, Attorney at Law, P.C, we offer a wide range of debt collection defense services that we can use to remove potentially harmful mistakes from your credit report. Let us assist you today.
Call (888) 744-0757 to schedule a consultation with our legal team today.