When dealing with credit reports, some errors can be more serious than others. These are the ones that can cause your score to drop dramatically or even prevent you from getting a loan at all.
Fortunately for consumers, checking your credit report for these mistakes is easy. Here’s what to look for:
1. Open Accounts That Aren’t Yours
Credit report errors can be difficult to detect, especially if you need to know what you’re looking for. One type of error often overlooked is accounts that have been opened in your name but are different from yours.
This could include credit card accounts that have been opened in your name, and the balance has been paid off. It could also include loans or mortgages that were applied under your name with zero balances.
As with any other credit report error, disputed accounts should be reported immediately by contacting both the creditor and the bureau reporting them (Equifax or TransUnion). You will want to ensure you keep a record of all correspondence related to this dispute so that, if necessary, you can present it as proof later on during a court case against an identity thief.
2. Delinquent Debts That Were Already Settled
If you paid off debt, but the credit report says you didn’t, it could be because of a re-aging process. If this happens to you, don’t worry—you can fix it! If debt were settled for less than initially owed, your credit report would reflect that the account is still open and has never been paid off.
The best way to correct this mistake is by contacting the reporting agency and asking them to confirm that they have received payment in full. You may need to provide documentation proving that you settled the debt successfully (such as an invoice).
3. Delinquent Debts That Were Never Yours
An unpaid debt that was never yours is one of the most common errors that show up on credit reports. It’s also one of the most frustrating because correcting it can be lengthy.
You may have a different name than what’s listed on your report or have moved since the debt was incurred. Perhaps someone stole your identity and used it to rack up debts in your name. Or maybe you paid an old bill for someone else and just realized it after.
The easiest way to avoid these mistakes is by regularly checking all three major credit bureaus: Experian, Equifax, and TransUnion (you will need to pay for each report). If you find any discrepancies or mistakes in your report, dispute them immediately!
Conclusion
Now that you know the types of errors that could be affecting your credit report, it’s time to fix them. The best way to do this is by contacting each credit bureau directly and requesting a correction. You can do this online at one of their websites—each site will direct you through the steps to make an inquiry or dispute.
If you need help with this process, many organizations offer free assistance (like Legal Aid). Or if all else fails and your debt is still not taken off after several attempts at resolving it yourself, then hiring an attorney might be necessary.
