Credit report errors are common, but you can fix them before they impact your chances of getting a loan or a job. According to the Fair Credit Reporting Act, the credit reporting company or the organization providing information about you is responsible for correcting incomplete or inaccurate information on the report.
Credit report errors can affect your score
Although an error on the report doesn’t mean doom to your score, some issues can suggest fraudulent activity or identity theft on your accounts. Credit report data is vital for credit score; thus errors can affect your score. It is important to check your credit reports to identify any errors and fix them before they can impact your score. Most importantly, people with common names could be at risk because of mix up. Here is how to fix the errors on your credit score
Get your credit report
Each year you can get a free credit report from three main credit bureaus, TransUnion, Experian, and Equifax, at AnnualCreditReport.com. It is important to check your credit reports once per year. If you feel your report is inaccurate, or if you have been denied employment, insurance, or credit within two months, you are entitled to a free credit report.
You should check your identification information for errors such as an address where you have never lived because that suggests identity theft. Check account information, which includes account number, name, and date opened. Similarly, look at account status and account type.
Disputing credit report errors
When you see an error on your report, you can dispute through phone, mail, or online with each bureau reporting it. The bureaus will then investigate and notify you of the result. Also, contact the organization providing the incorrect info, which will inform the bureau of the dispute, and if the info was incomplete or incorrect, it will ask the credit bureau to delete it. If disputing fails to resolve the issue, one can file a complaint with CFPB and ask for a probe to bring additional pressure to rectify the incorrect information.