Types of credit report errors you are likely to find

There are different ways that credit report errors show up. These range from more common mistakes, such as errors in personal data like name or address, which may appear minor but can snowball into major problems, a long trail of errors in the process of reaching the type of information original contents but also appear very serious, such as Chapters do not come in a clear way. Another common mistake is putting accounts the consumer does not own, often times due to a similar name or because someone stole their identity. At the same time, old information such as closed accounts still showing as open or accounts with incorrect balances can skew a consumer's credit profile.

How do Errors on Your Credit Report Affect Your Finances?

Mistakes on credit reports can lead to serious financial consequences. Getting this information wrong can result in credit at a higher interest rate or being turned down for credit altogether. According to the Consumer Financial Protection Bureau (CFPB), errors on credit reports can cost consumers hundreds, even thousands, of dollars over the years2. In addition to this, these errors can influence the hiring process too because a lot of employers check credit reports as part of the hiring process.

How to fix mistakes on your credit report fast

It is important and should be done quickly to report errors in your credit report. Here are the steps that consumers should take to correct these mistakes quickly:

- Get Your Credit Reports: You are entitled to at least one free credit report each year from each of the three major credit bureaus: Experian, TransUnion, and Equifax. Available Here AnnualCreditReport. com.

- Look for Mistakes: Read every report and find any mistakes. Make a note of any errors discovered because this will be vital to compete the dispute process.

- Contest the Mistakes: Dispute to the credit bureau that is reporting the error. This is usually done online, over the phone, or through the mail. Attach all applicable supporting documentation

- Step Two: The credit bureau must now investigate the dispute which is typically done within 30 days. Keep following up till the mistake is rectified and order your credit report to make sure the mistake has been fixed.

Legal & Historical Education for Consumers

There are a few tools that are designed to help consumers deal with and fix credit report mistakes. The CFPB's full guide on disputing errors on your credit report3. And consumers might want to sign up for credit monitoring services, which can send alerts if there are any changes to a credit report, possibly catching problems early on.

Legal Protections and Rights

As consumers, we have rights (in this case, under the Fair Credit Reporting Act (FCRA)) in our credit reports. This is a federal law that requires credit bureaus to investigate disputed items and fix mistakes. Consumers have access to remedies expressly stated in the FCRA if their rights under the law have been violated, which include the right to complain to the CFPB and to sue in court4.

Final Thoughts

Addressing mistakes in credit report is one of the most important parts of keeping a good financial image. Identifying the types of mistakes that can happen, the monetary consequence, and the way to correct these problems, consumers can take steps to protect their credit history. Couple this with the tools and resources available to them, as well as knowing their legal rights, gives them the confidence to take action to stop these incidences from happening in the future.

References

• Federal Trade Commission - Credit Report Errors Persist
• Consumer Financial Protection Bureau - How Credit Report Errors Can Cost You
• Consumer Financial Protection Bureau - Disputing Credit Report Errors
• Consumer Financial Protection Bureau - Understanding Your Rights Under the FCRA