Is Credit Reporting Inaccuracy Really a Thing?
Yes. Unfortunately, it is possible for inaccurate information to be included on your credit report and negatively impact your credit rating. There is probably no worse time to discover an error on your credit report than when you are about to make a major purchase such as buying a home or vehicle. So, be sure to review your credit reports with all three major credit bureaus (Equifax, Experian and TransUnion) one or more times per year and ensure that there are no reporting errors.
What Kind of Credit Reporting Errors Should You Look For?
- Look for accounts on your credit report that belong to someone other than you. Mixed files are a common type of credit reporting error. This can occur in a variety of instances ranging from fraudulent transactions to mix ups with accounts that belong to others who have a name or social security number similar to yours.
- Look for accounts that you did not open. Unauthorized accounts are another common type of credit reporting error. Generally, this will occur if someone used your information to open an account without your authorization.
- Look for inaccurate reporting on your accounts. Common mistakes include: debt that was discharged in a bankruptcy that is being reported as a debt that is still owed; a late payment being reported when the payment was made on-time; and other derogatory information that is not accurate.
What Should You Do if You Find an Error?
You can certainly consider seeking an attorney if you discover an inaccuracy on your credit report. If you decide to proceed on your own, it is very important that you dispute the reporting inaccuracy with the credit bureau. There is no requirement that the creditor fix the reporting inaccuracy, unless the dispute is made through the credit bureau.
How Often Should I Monitor my Credit Reports?
At least once per year, you should review all of your credit reports with all three major credit bureaus. Regularly monitoring your credit will enable you to promptly identify any inaccuracies or derogatory reporting.
You can access a copy of your free credit report from all three major credit bureaus (Equifax, Experian, and TransUnion) one time each year by visiting annualcreditreport.com.
During the COVID-19 pandemic, annualcreditreport.com has increased availability to free credit reports, allowing you to access them online once per week through the end of 2023.
Learn More About Credit
For the entire month of March, Financial Freedom Legal has focused on credit awareness. Each week, we shared a new blog post with news you can use about credit. Be sure to check out prior blog posts for more information on credit.
You can also reach Steve and Vee anytime at 804-FREEDOM for additional information.
