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What Errors Should I Be Looking for on My Credit Report?

— July 29, 2022

You should monitor your credit score to take corrective action as soon as possible.

A credit report summarizes the history of your borrowing and repayment activities. If you pay your bills on time, you need not worry about your credit. However, if you encounter a credit agency and they reject your application for a loan or credit card, then it is essential to know what errors to look for on your credit report.

Credit report errors can happen at any time and without your knowledge. It is, therefore, advisable to regularly check your credit report to ensure that no erroneous entries have been made. This article will provide the most common errors you should look for in your credit history.

Identity Errors

The most common error on your credit report will be identity errors. Identity errors occur when your personal information, such as your name, address, and social security number, is incorrectly recorded on your credit report. Identity errors can make it difficult for you to manage your credit report effectively.

You can easily avoid identity errors by ensuring that your personal information is updated and accurate. It is also essential to check your credit report annually, as the reports can be inaccurate due to information changes. In case of identity errors, a San Francisco credit report lawyer can help you correct the error and protect your future.

Balance Errors

Credit report errors can also be due to balance errors. Balance errors occur when you fail to pay your bill on time, so the balance is still charged to your credit report when it should no longer be there.

You can avoid balance errors by paying bills on time and keeping a record of all you owe, such as utility bills, loans, or credit card payments. It is also vital to check the performance details of your accounts and compare them against the payments made.

Account Errors

The actual status of your accounts can be incorrect on your credit report. It is also referred to as an error in the status of your accounts. Unfortunately, many people are unaware of this error, although it becomes a problem when you need to apply for a new loan or credit card.

Handmade brown leather wallet with credit cards sitting on brown wooden stool; image by Two Paddles Axe and Leatherwork, via
Handmade brown leather wallet with credit cards sitting on brown wooden stool; image by Two Paddles Axe and Leatherwork, via

You can check the correct status of your accounts by requesting the information from the creditor and comparing it with what is on your credit report.

Data Management Errors

Data management errors are also known as transposed information. They occur when your name or account number is transposed, credit accounts are added to the wrong name or incorrect account numbers, and your credit report becomes inaccurate.

You can easily spot this error by requesting a copy of your credit report and comparing it with the data that you have available on your accounts.

Duplication Errors

Duplication errors occur when your existing debts and accounts are listed on the same credit report. Duplication errors can also happen because of account number or address changes. If a duplicate entry is made, you are responsible for making payments on both or all debts and checking your credit report regularly to ensure no errors have occurred.

You can avoid duplication errors by ensuring that your creditor records all changes you make to your data and account details.

Fraudulent Account Errors

Fraudulent account errors occur when your name is used for opening an account without your knowledge, and you are listed as the credit card owner. It can result in negative entries on your credit report, which can affect how potential creditors view you. If a fraudulent account error occurs, you should contact the creditor and ask them to investigate further.

Continue Monitoring Your Credit Score

It is recommended that you make it a habit to check your credit report at least once a year. Having your credit report checked by a professional or legal advisor who can advise you of the correct actions to take is also essential.

You should monitor your credit score to take corrective action as soon as possible. The positive impact on your credit score will result in improved borrowing and repayment options.

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