Don’t Be a Victim of Credit Report Errors

As you may have heard, a Federal Trade Commission study showed that 5 percent of credit reports have mistakes that could lead consumers to pay more for loans, insurance and other financial products. This fact is not surprising, as we can’t expect millions of credit reports to be perfect. And having an error on your credit report it’s not a big deal as long as you can correct it in a timely manner and it’s not hurting your finances. But what happens when this is not the case? What about if a mistake on your credit score is so serious that is keeping you up at night?

Unfortunately, mistakes on credit reports are a nightmare for millions of people. Correcting a mistake could mean several calls to creditors and agencies, hours of research and even a trial. That’s why it’s important to be familiar with potential errors on your credit report and learn how to fix them.

Mistaken identities: This means you can be mistaken for someone with a similar name and a bunch of unpaid bills. When this happens, you will receive several calls from your creditors and debt collectors asking for payments. To prove that you are not the person creditors think, you need to contact your creditor and the reporting agency in writing. In the letter explain the nature of the mistake and how it should be fixed. Make sure you keep copies of all the documents.

Delinquent debt: Another common mistake has to do with a paid debt listed as delinquent. Many people pay off debt, but this doesn’t show on their credit report fast enough. The best way to solve this issue is by talking to the agency reporting the error. If the error is not fixed, contact the Consumer Financial Bureau, which assists consumers with credit card disputes and other financial issues. If contacting the agency doesn’t solve your problem, you may have to hire a lawyer to initiate a lawsuit.

People falsely reported dead: If you have been denied for credit or loans, perhaps you are considered deceased. This explains why no one is giving you any type of credit. I know this scenario seems awful, but it’s not that hard to fix. Once again, you need to contact the three credit bureaus, Experian, TransUnion and Equifax, in writing. Make sure you include your Social Security, full name, mailing address, copy of your id and a brief statement explaining that you are not dead. In no more than thirty days, the issue should be fixed and your report should go back to normal!