Credit Report Mistakes: How To Fix Them

Credit reports are used to track and assess any changes in our credit. This information can include any accounts we have open, our payment history and any outstanding balances. But unfortunately, the system of credit reports isn’t perfect.

Occasionally errors can appear on reports, which is why its’ important to check your report at least once per year. Watching for errors on your report is the best way to repair any problems or inaccuracies you may find in your credit history.

How do errors show up on credit reports?

When an error shows up on a credit report, it is normally due to one of a few possible scenarios. Normally they are simply caused by human error. Most credit report problems are seen simply because the report is incomplete or includes another individual’s information.

What Errors are Possible?

When you check your credit report, the main thing you need to do is check for errors. Most people, however, do not know exactly what they should be keeping an eye out for when they scan their credit report for discrepancies. This quick guide will tell you what factual errors can occur and how.

Incorrect Name

A main reason that credit reports can be inconsistent is when people apply for credit under different names. For example, one person named William Smith could apply for credit under the names William, Will, Bill or Billy, and each could potentially show up as a separate report. Try and keep the name you use on credit applications consistent to preemptively prevent any problems.

Clerical Error

Human is a big factor in credit report errors. Information such as name and address can easily be misread on hand-written applications. For this reason, you should always try to write clearly and in print if you have to fill out a credit application by hand.

Social Security Number

You should always verify your social security number when reviewing a credit report. A lot of your identity revolves around a single nine-digit number, and just one incorrect digit, your credit report could be entirely inaccurate.

Incorrect Payment History

Keep close records of your payment history for when you review your credit report. Payments can occasionally not show up or be attributed to the wrong account, so having a personal record of your payment history can be useful to verify any inaccuracies.