We live in the age where intrusion is a common phenomenon. Big Brother is not the only one that is watching you. Financing companies, banks and auto lenders also monitor your credit report and analyze the confidential financial information that is provided in it.
And, if there is an error on your credit report, it can create massive problems for you. It can increase your interest rate, obstruct you from getting a job or prevent you from buying a car. A study by FTC has revealed that one in every five customers has an error on his/her credit report. So, you must check your credit report for any errors and remove them at the earliest.
What are the Common Credit Report Errors?
Inaccurate Identity Information
The three foremost credit bureaus – Equifax, Experian and Trans Union collect information of every American. They commit errors because of two main reasons: massive data management and human involvement. Following are the examples of errors committed by the credit bureaus:
1. Incorrect Name and Address
2. Error in Employment Information
3. Mistake in Social Security Number
Errors in Financial Information
A bank or a financing company may pass inaccurate information to a credit bureau. Also, a credit bureau can commit errors while processing your financial information. The most common financial errors include:
1. Unwarranted Financial Transactions
2. Duplicate Entries
3. Incorrect Origination Date of Mortgage
4. Out-Dated Bad Debts Record
5. Bankruptcy Information older than 10 Years
Existence of Fraudulent Accounts
According to Javelin Strategy and Research, 13.1 million Americans were victims of identity fraud in 2013. The number shows how commonly a person’s information is misused in order to access money.
So, while checking your credit report, you must pay attention to any unwarranted line of credit. If you find any unjustified auto loan, credit card or home mortgage, contact the credit bureau immediately and opt for a security freeze on your credit report.
How to delete Errors from your Credit Report?
Do not worry about errors on your credit report, here’s a step-by-step procedure to help you remove them:
If you think there is an error on your credit report, you must collect evidence to support your claim. It will help you in proving the relevant credit bureau wrong. Also, it will ensure faster results. For example, if you think that the auto loan origination date is inaccurate; you must find the auto loan contract and show the accurate date to the credit bureau.
Dispute it with the Credit Bureau
To remove errors from your credit report, you must dispute it with the relevant credit bureaus. Highlight all the errors in your credit report and attach evidence. You must also write a letter to the credit bureaus and explain your situation in detail.
Inform the Relevant Credit Reporting Agencies
Credit reporting agencies such as banks, credit card companies and lenders provide financial information to credit bureaus. It helps the credit bureaus in keeping track of your financial situation. All credit reporting agencies have a legal responsibility of investigating your complaints. So, if a bank is providing incorrect information to the credit bureau, inform the bank authorities immediately.
Now that you know what the different kinds of credit report errors are, identify them and follow the step-by-step procedure to remove them. It will help you in keeping your credit report risk-free.