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Common Credit Report Errors | Advantage CCS

Most people understand the importance of a strong credit score, but unfortunately, many people don’t understand how important it is to continually monitor their score and their overall credit report. Findings show that nearly 80 percent of the credit reports reviewed in a recent study contained at least one error. More often than not, people who have errors on their credit report are unaware that those errors exist how their credit scores are being affected. In fact, there is a one in four chance that the error will actually result in denial when applying for credit.

Personal Information Errors

Even something as simple as outdated personal information – such as address or name change – can have a negative impact on your credit report because conflicting personal information can create confusion when you go to apply for a line of credit. It is wise to contact all three credit bureaus – Experian, Equifax, and TransUnion - following any such change to be sure the information they have on you is up to date and correct.

Clerical Errors

Along the same lines, incorrect account details are common credit report errors that can end up causing quite a few headaches and hassles when it comes to obtaining a new line of credit. As with any document, clerical errors are always a possibility, so you want to be sure every piece of information on your report is correct and properly noted. For instance, when you review your report you will want to check to see that every line of credit is correctly labeled and identified and that all credit limits are up to date. If one – or all – of the credit bureaus are reporting incorrect credit limits (whether too low or too high) can negatively impact your score.

In addition to correct credit limits, make sure your credit report correctly lists the actual number of accounts you have in your name. As unlikely as it may seem, it is not uncommon for credit reports to list accounts that belong to other people on reports that are not theirs, such as someone living at the same address or someone with the same or similar name.

Some other common credit report errors include misspelled names, incorrect Social Security Numbers, incorrect addresses, unauthorized hard inquiries, and negative items that are older than seven years.

Remember, you are entitled to one free credit report per year, so it is worth your while to pull your report from all three bureaus to make sure everything is accurate. Even the slightest error can result in big problems.

Contact Advantage CCS

For more information on ways to protect your credit report and score, contact Advantage Credit Counseling Service. Credit counselors are available online, on the phone or in person to help you review your credit report for errors and help you develop strategies to improve your score over time. With a debt management plan and a budget, you can start breaking the debt cycle today.