Credit report errors are all too common. Studies have found that inaccurate reports are a serious problem:
- Between 46% and 70% of all consumer credit reports contain mistakes.
- 40% of all credit reports contain public record information that belongs to someone else, a credit account that does not belong to the consumer or accounts incorrectly reported as delinquent.
- 26% of credit report errors are serious enough to result in a denied application for credit, employment or housing.
Some mistakes are more common than others, and it is important for consumers to be aware of these errors when reviewing their credit files.
Common Credit Report Error: Mixed or Merged Credit Files/Mistaken Identity
A mixed file is a credit report mistake in which the credit bureau puts information belonging to one consumer into another consumer’s report. This problem occurs most often when two consumers have similar addresses or names, but this is not always the case. Our firm has found that in some cases, the credit bureau has known of the issue for several years and could prevent it, but does not always take steps to fix the problem.
Common Credit Report Error: Public Record Mistake
Public records include bankruptcies, tax liens, lawsuits and judgments, and all are reported on consumers’ credit reports.
Public records can be very damaging to a consumer’s credit rating and cause a denial for a mortgage, job, credit card or apartment rental. This mistake typically occurs when the credit bureau obtains information from separate companies who are sloppy in gathering information, do not check court records and do not take the time to determine who the record belongs to.
Common Credit Report Error: Inaccurate or Stale Collection Accounts
Debt collection accounts make up a significant share of credit report errors, and these mistakes may occur in many ways. Most often, the debt collector fails to obtain sufficient information from the creditor to properly identify the right consumer, or get the right account status.
As a result of this mistake, collection accounts may end up on the wrong consumer’s credit file, or on the right file with the wrong information.
Many debt collectors also “re-age” the accounts, which makes them appear to be recent delinquencies. This means the accounts may stay on the consumer’s credit report longer than allowed by law.
Even when the account is accurate, most negative credit information can remain on a credit report for only 7 years in most cases, and sometimes up to 10 years.
Common Credit Report Error: Identity Theft
Another common form of credit report mistakes is accounts that have been fraudulently opened or used by an identity theft.
Victims have the legal right to have these accounts removed from their credit reports. Despite this, even after a consumer disputes the inaccurate or fraudulent information, it may remain on the file because the credit bureau or bank does not take the necessary steps to check their records and investigate the dispute.
Common Credit Report Error: Inaccurate Employment Records
Consumers often lose out on employment due to inaccurate credit reports pulled by employers. Employment records do not impact a credit score, but they may impact a consumer’s ability to get a new job.
Do You Have Errors On Your Credit Report?
Do not let these mistakes remain on our credit report. Contact us today for a free case review. We will see if we can help you resolve the mistakes on your credit report. It is crucial that you check your credit report at least once a year to correct errors and to detect unauthorized activity.
Once again, the information in your credit report affects whether or not you get a loan, and it determines your interest rate when you do get a loan. The information also affects insurance, renting a home, and even getting a job. Therefore, you want to make sure the information in your credit report is accurate, complete, and up-to-date before you apply for a loan or a credit card, before you apply for a job, before you apply for insurance, and before you submit a rental application. Finally, monitoring your credit report will help guard against identity theft.
Contact Agruss Law Firm, LLC, for help disputing inaccurate information in your credit report. We have settled thousands of consumer law cases, and we would like to help you, too. Under the law, we can help you fix the inaccurate information in your credit report, and get you money damages. Plus, the credit reporting agency will be responsible for our attorney’s fees. You won’t owe us a dime for our services.