The Federal Trade Commission (FTC) claims, one in four people have errors on their credit reports that could lead to lower scores and credit mistakes. Credit mistakes ending in merged reports is a whole other mess, that you definitely want to avoid.
Let’s look at the most common mistakes you are most likely to see on your credit report, and what they can mean for your financial security.
Inaccurate Personal Information
Your name, address and social security numbers are used to identify you to the “big three’ credit bureaus. Something as simple as a transposed or incorrect number on your social security number or having a similar name as a family member could result in you having a merged report.
A merged credit report is a report that has someone else’s information reported on your credit file. It is typically a mistake by the credit reporting agency or your creditors causing your information to merge with that of another.
This situation can lead to a handful of consequences including, costing you a mortgage, a job, or to pay higher interest rates.
Missed Loan and Credit Card Payments
A late payment could erase anywhere from 60 to 110 points, depending on your credit score. A common cause of inaccurate reporting happens when loan or credit card payments are mistakenly applied to the wrong account. Once disputed, late payments can be deleted by the original creditor.
Mortgage or Loan Listed Twice
Duplicate entries, or instances where a particular situation shows up more than one time, on your credit report can make it look as though you have more debt or credit issues than you really do, which can negatively affect your chances of getting a loan. This mistake often occurs when loans are serviced or sold.
Any of the above errors can create the appearance of a consumer having “too much” credit available, being over-extended, or not having been a responsible payer of his or her obligations.
As soon as you spot an inaccuracy on your credit report, gather documentation that proves the information is wrong and submit it to the credit bureau(s).
Fixing errors can be a tedious task that requires time and patience. If your not confident in your ability to take on this burden, call for a free consultation.
Working with THD Credit is a great idea to ensure your disputes are handled correctly and in a short amount of time.