Possible Errors on the Consumer Credit Reports
Possible Errors on the Consumer Credit Reports
Errors that appear on your credit report could have various sources. It is best to review your own credit report in order to ensure that there are no mistakes. Errors on your credit report will also affect your credit score. The credit score model uses the date at the credit reporting agencies in order to calculate a score for you. Some reasons for error:
1. Credit Grantors may report incorrect information.
2. Credit Reporting Agency may enter the information incorrectly.
3. Fraudulent Activity.
4. Old derogatory information not removed even though it no longer exists.
Personal Information
Make sure this is all accurate.
Public Records
Many public records stay on your credit report for years (7-10 years); it depends on the type of public record that you have. There are instances where the public record should have been removed but was not. This would hurt your chances of getting credit. It is also possible that a public record is on your report and it belongs to someone else.
Collections
If you have paid off a collection, make sure that your credit report is updated to indicate that. No one will want to lend you money if someone else is chasing you down to pay off old debt. Also make sure that these collections belong to you, because they might not.
Trades
Credit grantors make mistakes just like anyone else, so make sure all your tradeline information is accurate. There have been instances where a credit grantor reported incorrectly, but overlaid it with the correct information the following month. However, if you applied for credit the month that the information was incorrect, there is a chance that the incorrect information affected the credit grantor’s decision or even the terms of the agreement. Credit grantors are more lenient to people with better credit and may give you a better offer if they see that you would be a valuable customer that would pose only a low risk to the company.
Credit Report Inquiries
This is where you can detect early fraud on your credit report. If someone has gained access to your personal information and social security number, they could arguably apply for many credit cards under your name. Make sure the inquiries in this section are all yours. If they end up being approved for the credit card, they could charge up an incredible bill and just not pay it. It would ruin your credit, but they’ll have a new wardrobe.
Consumer Statement
If there is one, make sure it belongs to you. If you never put anything on it, make sure it’s still empty.
Other Errors
1. Deceased – if there is a deceased statement on your credit report, no one will give you credit for obvious reasons…to them you don’t exist anymore.
2. Fragmented Files – this is hard to detect, but if you’re thorough, you might be able to catch this. Some people have more than one credit file at the credit reporting agencies. This happens sometimes when you change your name, address, or social security number for whatever reasons. Review your credit report thoroughly, make sure all the tradelines are yours, but also look for financial relationships you have that are NOT on the tradeline section. Most financial institutions report to the credit reporting agencies. For example, if you have a credit card from a major bank, but you do not see that relationship under the tradeline section, question the credit reporting agency and the financial institution. It is possible that trade is on a separate credit report, which also belongs to you.
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