Did you know that about 80% of credit reports have some type of errors in them? Many types of errors can have a huge impact on lowering your score. Not to mention these errors could be making you pay more for the loans you are getting. Some of the mistakes are as serious as accounts that are not even yours, or even false delinquencies.
These are some of the most prevalent mistakes on credit reports:
41% of credit reports have inaccurate demographic information, including name, addresses, work history, and other personal information.
20% of credit reports don’t show information for major loans or mortgages. Since good payment history on these loans gives your credit rating a boost, this can harm your overall score.
26% of credit reports show accounts that are improperly listed as open or “closed by credit grantor,” rather than closed at your request. This can make it seem as though the creditor had cut you off, potentially lowering your score.
So where should you go from here?
Get a copy of your report and check it over thoroughly. You will need to check even seemingly routine information such as your name, addresses (current and past), birth date, social security number, and so on. Yes, it’s a hassle to have to verify the simplest information, but you should do it anyway.
Carefully review every single account on your report from the first page to the last. Verify that every item is reported correctly. It’s especially important to pay attention to credit limits, current balances, account opening date, and recent activity.
It’s important to review the inquiries section to check what companies have been requesting copies of your credit report. If you find companies that you don’t remember having requested credit from, then you should contact them right away to make sure someone else isn’t applying for credit with your personal information.
After you have completely reviewed your report, if you have found any errors, you have a few options on how to correct them. You can remove them yourself with dispute letters to the appropriate creditors or credit bureaus, or hire a company to guide you with this, or you may even hire an attorney.
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