If you plan on taking out a mortgage or car loan, then you know your credit ratings are crucial. An error in your credit report may hamper your chances of taking a loan and can bring your score down.
- According to a new Consumer Reports survey, more than one-third, or 34%, of Americans found at least one error in their credit reports.
- Consumer Reports asked volunteers to get a copy of the credit report to check for errors. 5,858 people did this between February 1 and April 1, 2021.
- 29% found an error in personally identifiable information, and 11% saw an error in their account information.
Why You Need to Check Your Credit Report
Errors related to personal information do not compromise your credit score, but they can make it difficult or impossible to access your credit reports. On the other hand, an error in your account information can compromise your credit score. This three-digit number directly affects your ability to get credit, like a mortgage. It also directly impacts the interest you pay.
Unfortunately, by the time people try to rent a new home or car, they may find it is too late to rectify the incorrect credit report. Therefore, it is imperative to check the credit report and ensure it is accurate.
Common Errors in Credit Reports
1. Personal Information
The majority of errors in credit reports are personal information errors—such as your name, phone number, and address. This can happen when credit bureaus confuse consumers, or when your information isn’t updated. For example, if you’ve recently moved, changed your name, or updated your phone number, you need to make sure your personal details are updated.
2. Number of Accounts
Make sure to audit the number of accounts in your credit report, to ensure that no loans or credit cards were opened under your name without you knowing. In the best case, an error in your open accounts can be due to clerical errors, but in the worst case, it’s a sign of active identity theft.
3. Account Reporting
Inaccuracies in the reports of your actual accounts also need to be watched, since they can affect your credit rating and your credit utilization ratio. The most common errors include:
- Closed accounts being reported as open
- Timely payments marked as missed or late
- Incorrect dates on opening or closing accounts
- Incorrect payment dates
- Incorrect balance or credit limit
- Your name is listed as the owner when you are an authorized user or vice versa.
There is no denying that discovering an error in your report does not make things easy for you going forward. After all, disputing your credit report is quite a burdensome process. The credit report system needs time, patience, and careful consideration to successfully navigate. But in actuality, repairing your credit report is quite tricky.
As such, it’s best to seek professional help, and Briteside Solutions is here just for that. We don’t just help our clients through financial hardship but believe in empowering our customers through the process. To learn more about how we can help, get in touch with us today!