Citizens in America who depend on loans to help them accomplish their financial goals, understand how important their Credit report errors, small or big are the cause of them paying high interest rates on mortgage, auto and personal loans.
In a report the FTC revealed that one in every five consumers found an error on their credit report, which nearly accounts for 40 million people.
Also, most of the mistakes, charge-offs or liens appearing on the credit report are in most cases found to be erroneous, outdated or unverifiable but still get reported by the credit reporting agencies.
So, how can you locate and fix errors on your credit report? It’s a big challenge. But it’s possible if you have the know how . Here are a few reasons that can cause errors to appear on your credit:
- When you fill out a loan application, you may have made some mistakes or the person who assisted you may not have understood your writing and they may have submitted inaccurate information to the credit reporting agencies. Financial institutions rely on the information you provide and then they forward your information to the credit bureau. When you have an error on your credit report , you have to get connected with the credit bureau directly and request that they update or correct the information on file.
- Sometimes, data furnishers like- banks, private lenders or creditors make mistakes while submitting data to the credit bureaus. Although you didn’t make the mistake, you have to still take the necessary steps to have them corrected.
- It’s hard to believe that organizations that handles millions of credit reports whole USA also make so many mistakes in handling our personal information.There is a large quantity of data that is outdated and not reporting correctly, but is still being used to determine if you will be approved for a loan. Beware and always keep an eye out for errors on your credit report and dispute them as soon as you spot them.
- If you find errors on your credit report that happen to be accounts that you never applied for, It’s probably a case of identity theft, which means you became the prey of an identity theft who used your financial data to make the purchase and make you pay for it. Well, such errors can also be resolved and the person who stole your identity the felony can be punished if you notify the authorities.
Finally, to fix the derogatory marks on your credit report, you can either hire a credit repair services company or do it yourself. When you want to do it all on your own, see how credit repair works.
Annually, you can get a free copy of your credit report from AnnualCreditReport.com and then start reviewing your credit report with a fine-toothed comb to identify errors on your credit report. Once, you identify the errors, highlight them all and dispute them.
Summing it up
The severe consequences of credit report inaccuracies lead to a lot of financial problems such as missed opportunities and paying for debt that you really don’t owe. No one other than you will better understand the pain of bad credit. In order to avoid this from happening , monitoring your credit report and disputing errors are essential. Ultimately, you are the best person to judge and identify the negative items on your credit report . Start doing it now!