Three of The Most Common Errors in Your Credit Report

We all make mistakes, and credit checking bureaus are no exception. As a matter of fact, a study conducted last year found that there is one in every four consumer credit reports that contain errors –from minor mistakes to outrageously significant oversights.

It’s critical to know what to look out for when checking for mistakes in your credit reports. There are usually three kinds: errors in identity, account details as well as fraudulent accounts.

Errors in Identity

A credit bureau maintains its own system and database of data, which includesconsumers’ personal and account information as well as payment history. These pieces of information are found in a credit report.

There will be times when a credit bureau may get some of the information incorrectly. These errors are usually minor. As an example, the bureau may get the strong street address, however this should not have an effect on your actual rating.

On the other hand, the errors could be worse in nature. The bureau could mix up names and details, and you may end up seeing another person’s credit report. It also won’t be a surprise that someone else has yours. This could affect your report positively or negatively, depending on the other person’s payment standing.

Errors in account details

There may be times when the bank or lending company that provides the information to the bureau may give the wrong set of data, Even if it is correct, there also is the risk that the bureau itself may process the information incorrectly. As an example, your credit card may be provided the wrong credit limit, which can directly impact your credit utilization, and drag your score down. Your loans could be falsely tagged as still open when it has been paid out months ago.

Fraudulent accounts

This is perhaps the most serious error among the three, as this means that there is somebody else doing the spending on your behalf. This means that your name, social security details, and other pertinent information are compromised and poses a big risk in ruining your credit standing. If you see a certain line in your report which you do not recognize, do not hesitate to action right away – freeze the account to ensure that no other purchases will be made fraudulently.

It is important to note though that a security freeze on the account will prevent you – or anyone who is using your identity – from opening new lines of credit. It is recommended to keep the accountfrozen until things have been sorted out, and that the appropriate steps have been taken to prevent further fraudulent transactions to be made under your name.