Reporting Mistakes That Could Hurt Your Credit Score

Like many Americans you know the importance of a good credit score. Your credit rating can determine whether you get that home of your dreams or can finally retire that “classic” 1976 Gremlin you’ve been driving around. What you may not know, is that according to the Federal Trade Commission, 1 in 5 consumers have errors on at least one of the three major credit reports, Equifax, Trans Union and Experian.

Here are 3 of the most common errors:

• Identity Errors.  Your credit report might have someone else’s information on it, which, depending on the other person’s payment history, could give you a good or bad score.
• Account detail errors.  The bank or credit bureaus may simply have incorrect information listed, such as wrong dates or missing payment history.
• Fraudulent accounts.  This occurs when someone has taken your identity information and opened lines of credit in your name. 

Fortunately, these mistakes don’t have to darken your financial future. Get a copy of your credit report each year from annualcreditreport.com.

If you detect an error on your credit report, send a letter to the credit bureau(s) along with copies of your supporting documentation. They are legally required to investigate your dispute and will typically do so within 30 days of receiving the notification. If you find that the information provided to them by your bank or other lender was inaccurate, you can contact these businesses as well. 

Your credit is important to you. Don’t let mistakes ruin it.