When reviewing your credit report (something you should do at least once a year), it’s important to pay close attention to every last detail.
Taking this one step further, you must be sure that every bit of information is 100 percent accurate. It only takes one error to drag down your credit score – and that’s not something you want to experience.
So, with all this in mind, let’s examine the four most common types of credit report errors:
1. Identity Error
This can take on many forms, including but not limited to:
- Incorrect accounts on your report as a result of identity theft
- Errors associated with your identity, such as your name, address, and/or phone number
With identify theft impacting more than 15 million U.S. consumers every year, you need to keep a close eye on this.
2. Balance Errors
This is exactly what it sounds like: an error associated with your credit limit or current balance.
Your balances change often, so you need to have a firm grasp of your finances in order to pinpoint mistakes.
3. Data Management Errors
You don’t expect this to happen, but it’s a primary source of credit report errors.
An example of a data management error could be as simple as the reinsertion of inaccurate information after requesting a correction.
There is a human element to every credit report, so the potential for a data management error is very real.
4. Incorrect Reporting
Perhaps the most common type of credit report error, one of these can sneak up on you when you least expect it.
Here are some examples of incorrect reporting:
- A closed account showing as open
- The same debt listed several times
- An account reported as late
- Inaccurate information regarding recent payments
- Inaccurate information regarding when the account was opened
As your credit report grows, it becomes more challenging to monitor every last detail. However, this is no excuse. You need to regularly review your report for inaccuracies.
Final Thoughts
You hope to never find a credit report error, but realize this could happen at any time.
Even though this is a common concern among many consumers, it remains a problem. So, the only thing you can do is regularly review your report and take immediate action if you come across an error. There’s no mistake that can’t be fixed!