Credit Report Mistakes You Have to Watch Out for, Or Else…

Many people know that errors on their credit report are sadly common, and could be tremendously damaging and harmful to their reputation. Add to that the fact that they could actually keep you from securing credit, a loan, housing, and even a job. Watch out for these common errors the next time you request a credit report.

• Clerical Mistakes: While these are extremely common, note that it could significantly affect your credit score. Ensure that every detail is accurate and keep an eye out for correct labeling of credit types and loan types, whether for car loans or mortgage loans, adds a community lender.
• Out-of-date Information: Take note that credit reporting agencies all get personal information from various databases and that the three important credit bureaus, Equifax, TransUnion, and Experian have their own databases that they update at varying times.
• Identify Theft: It’s crucial to examine your credit report every year just to make certain that all listed accounts are really yours because identity theft victims typically find plenty of accounts that they supposedly opened but really didn’t.
• Combined or Erroneous Accounts: Your information could also be combined with another individual’s account, usually due to a similar or same name. Ensure that all listed accounts on your report are really yours.
• Employment Report and Background Check Mistakes: Errors on both reports typically occur because of clerical errors, outdated information, or mixed up personal details. These errors could be the most potentially damaging because it could lead to loss of employment, hence, loss of income.

In the event that you spot inaccuracies on your credit report, it’s important that you correct them sooner rather than later. You could start by contacting the credit reporting agency you obtained your report from and go from there. Likewise, ensure that you keep clear records of relevant documents such as the credit report with errors and all communication with the agency in case they don’t comply with your request and you decide to claim damages.