Credit Errors: The 6 Most Common Suspects

Credit Errors: The 6 Most Common Suspects

Credit Errors: The 6 Most Common Suspects

You have a good job with reliable income, you are diligent with your payments, so your credit score goes really well. Well… not exactly! In order to maintain your credit rating in a good level, you have to consider more than these. While paying on time is extremely important, checking your report for credit errors, is crucial as well. Credit errors can negatively affect your ability to get loans, and/or credit cards. Don’t panic, these errors are common, and fortunately, they can be fixed. The following are the most common types of credit errors you are more likely to see on your report. Check them out! 

Incorrect Personal Details: 

Probably your name or address etc., is the last thing you remember to check on your credit report, but hey, you are wrong! Personal identification information appears wrong due to misspelled names, usually entered from other people who misread your handwritten applications. Also remember to check the initial of your middle name. How could a wrong name affect you? It’s simple! A wrong name or initial will cause credit bureaus to confuse you with someone else who has a similar name. And that means that his information will appear on your report! 

Accounts You Don’t Recognize: 

Read your report thoroughly and spot credit errors like unknown accounts. If you see any account that you don’t remember opening, then you’re probably a victim of financial identity theft. Read our article for tips to secure your personal financial information: “Financial Identity Theft: How to Stay Safe.”

The Same Account Is Listed More Than Once:

Now that you’re sure that there are no fake accounts, check for duplicated ones. Mistakes are for humans, so it’s possible that some of your accounts will be listed more than once. No creditor or lender will spot that for you. Duplicate accounts will show that you have higher debt and extra credit to pay off.

Who Closed the Account?

Credit errors can be related with old or closed accounts as well. If you recently closed an account, check that your credit report states the same. Sometimes, it mistakenly shows that the account has been closed from the lender and not from you. This is important, because accounts listed as closed by lenders, can have a negative impact to your credibility.

Divorce Follow Up:

Credit errors happen, as well as life errors! Things didn’t go well and you got a divorce, that’s fine. Don’t forget to remove your name from possible joint accounts, you and your spouse were sharing. This is to make sure that you will not be responsible for any of his debt in the future.

The seven-year rule:

Accounts older than seven years, have no place in your credit report. Full stop. Spot them and show them the exit door. 

In order to easily spot credit errors, it helps to know exactly what goes in and what not, in your credit report. Read our blog post about it: “What Is Included in a Credit Report?” 

And now that you found the credit errors, what? Well, now you have to write a dispute letter and request to correct or remove the negative items. You need help to fix your credit? Contact a reputable credit repair company like Baby Boomers Financial. Give us a call, and let us help you achieve your financial freedom.