Understanding Your Credit Report: Common Errors And How To Fix Them

Credit reports play a major role in our lives. They have an impact on whether you can apply for a mortgage, get the apartment you want, apply for a car loan, and even certain employers might want to check your credit before hiring you. That being said, credit reports are not always accurate. Errors can happen, and when they do, even a small mistake can have serious consequences. If you know how to spot and fix credit report errors, it can improve your financial future. 

Common credit report errors consumers face 

There are a lot of different credit report errors that can happen to even the most conscientious of consumers. These include: 

• Accounts that don’t belong to you – Identity theft is a huge concern for today’s consumers. In some cases, the mistake is innocent. They mixed up your file with someone else’s. Other times, it isn’t and someone has been using your name to open credit card accounts. 

• Incorrect account balances or payment histories – In some cases, a paid off account might show you still have a balance. In other cases, an on-time payment might be marked as late. 

• Duplicate accounts – In some cases, you may find the same debt listed twice on your credit report. This makes it look like you owe more than you do and reduces your income to credit ratio. 

• Outdated negative information – The majority of black marks on your credit report will fall off over time. In some cases, however, your credit report isn’t updated properly with the new information. 

• Incorrect personal information – You can end up with the wrong address or employer on your credit report. This might contribute to errors down the road.

The aforementioned mistakes can lower your credit score and make lenders see you as a higher risk than you really are. 

How to dispute credit report errors 

Federal legislation allows consumers to dispute inaccurate or outdated information on their credit reports. Basic steps include: 

• Obtain copies of your credit report – You should review reports from every major credit reporting agency. Errors can appear on one report but not others. 

• Identify and document errors – You should gather your statements, receipts, and correspondence that show why the information on your credit report is incorrect. 

• Submit a written dispute – Your statement should clearly explain the error and include supporting documents. It’s important to keep copies of everything you send. 

• Allow time for investigation – The credit reporting agency will have 30 days to investigate the account and respond.

This is usually enough to get the account taken off your credit report. However, not every dispute is going to be handled properly. 

When is legal representation necessary? 

In some cases, credit reporting agencies will fail to conduct an investigation or continue reporting the incorrect information even after your dispute. If that’s the case, you do have legal options.

A credit report attorney can help you determine whether your rights have been violated by the credit reporting agency. We can also help you pursue appropriate remedies. Taking legal action should spur the credit reporting agency to correct your account. You might also be entitled to compensation. 

Talk to a Columbus Credit Report Lawyer Today 

Kohl & Cook Law Firm, LLC, represents the interests of individuals who have improper accounts on their credit reports. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin putting pressure on the credit reporting agency.