November 05, 2018
You’ve probably heard about the importance of checking your credit reports regularly. It’s wise to stay current on the status of your credit so you know how well you’re doing managing it. However, an equally important reason for checking your credit report is to make sure the information contained within it is accurate.
The information in your credit report comes from multiple sources, including most if not all of the entities currently extending you credit. Beginning in July of 2017, stricter rules on public record collections require each citation to include name, address, and Social Security number, or birthdate to help avoid errors.
But mistakes—while not common—can occur. Some of them might be simple errors, such as incorrect contact information. Others, however, could negatively impact how creditworthy you appear to potential lenders, such as an incorrect record of past-due payments.
Should you ever come across erroneous information in your credit report, start by following these helpful tips:
Contact the credit reporting agency.
There are three major credit reporting agencies that produce your credit reports: Experian®, Equifax®, and TransUnion®. If you discover a mistake in one of your reports, contact the agency in question by using the following information:
Contact the lender.
Immediately after contacting the credit reporting agency, you should also reach out to the lender.
In all honesty, disputing information in a credit report can be stressful and
A little diligence up front could save you a lot of legwork on the back end.
According to a study by the Federal Trade Commission (FTC), one in five consumers have a potentially material error in their credit report that paints them as a higher risk than they actually are. So effectively disputing errors in your credit report is a valuable skill. Here’s how to go about it:
Your credit reports are like report cards on how you’re doing with your credit. Potential lenders rely on them to get an accurate picture of your credit behavior in order to make more informed decisions on extending you credit.
Your credit history is a key factor used by creditors to make lending decisions. But banks, mortgage companies, credit card issuers, and other financial institutions aren’t the only organizations that review your credit reports. Your credit history may also be used to make insurance, employment, and even rental application decisions.