Common Errors On Your Credit Report | How To Dispute Them Correctly

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Your Credit Report

Do you wish to maintain your credit history? Yes? Then, you must keep a check on your credit report.

Clearing your credit report off of any error can give a solid boost to your dropping score. For instance, even if you own the best student credit cards Canada or are thinking of getting the top one out there around your area, it will all be a waste if you don’t know how to manage it like a pro.

Henceforth, you’ll be ruining your chances of getting low-interest rates or good value insurance.

So, it’s a must to find those errors and fix them on time to eliminate any negative things on your credit report.

Why Should You Check Your Credit Report?

To simply understand why you should always check your credit report, let’s answer some questions first:

  • Have you ever been offered a higher-interest rate than others?
  • Was your bank loan rejected recently?
  • Has it become difficult for you to find an affordable and low-interest apartment or rental place?
  • Is your car insurance taking a toll on your financial health?

If you answered ‘yes’ to any of the above questions, you must know how important it is to have a good credit score and maintain it in the same range.

However, not all those mentioned things will always be your fault. Yes, they are directly related to your bad credit score. However, it’s not necessary that you are the one to blame here. Still, it will always give your lenders the idea of ‘poor client,’ making you face all those high-rate situations. 

  • There might be a clerical error in your credit report you weren’t aware of
  • There might be unidentified credit accounts under your name showing in your credit history
  • There might be an unauthorized transaction from your account ruining your credibility

Whether you hurt your credit score or were a victim of identity fraud, you’ll be facing the challenges. And it will eventually become your fault. Wondering how? By not checking your credit report consistently! 

You never know! Only if you had checked your report, you might have met with different circumstances. You might have caught the problem and were able to do something to fix it.

So, let’s read on to find common errors you need to look for in your credit report:

Common Credit Errors To Look Out For

Almost more than one-third of the consumers found at least one credit error in their credit report – explained Zack Friedman at Forbes.

And, the list goes on with:

  • 34% found errors in their credit report
  • 29% found incorrect personal data
  • 11% found wrong credit accounts under their name
  • 15% found wrong forbearance accounts

Imagine if you don’t have a habit of checking your credit report, you could be easily among those percentages suffering from any type of credit report error. 

Here are some of the common errors that could be running your credit report:

  • False Personal Information

The most basic yet critical error of all the mistakes is your personal information. So, the importance of the data makes it the first thing to look for in your credit report.

Yes, it may seem so basic that it can never be wrong, but as mentioned above, 29% of users find incorrect personal data in their credit reports.

You must look for:

  • Misspelled first and last name (wrong name)
  • Incorrect phone number (old, not in use, or wrong spellings)
  • Wrong address
  • False security or identity verification number

Inaccurate personal information might not directly impact your credit score, but it will give your application an incomplete and incorrect status. But, of course, you don’t want that with your lenders.

  • Wrong Transaction Status

Your transaction history is one of the crucial factors to maintain your credit history. In fact, it weighs the most in concluding your credit score range. And, wrongly mentioned missed or late payments can put all your efforts in the gutter.

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Yes, it is possible to rebuild credit score after late payments, but it can really take a toll on your credit-building efforts if the wrong status goes unnoticed.

For instance, you had a credit debt but paid it recently with all your might. However, when you check your credit report after a few months, it still shows your debt status as ‘unpaid.’ 

It will leave a negative impact on your credit report and your credit score.

  • Redundant Credit Accounts 

Duplicate or redundant accounts are credit errors everyone usually misses to notice. Like, it is easier to spot a strange account under your name than to look for a duplicate account with your name.

Surely, it doesn’t seem like a serious thing because those are still your original accounts. So let’s elaborate the situation for you, folks:

  • You have a negative $300 balance in your account. Do you want it to show twice in your credit history?
  • You have three missed payments in your other account, which you obviously paid later. Do you want to see the bad history again?

As expected, you answered no! So, it is better to keep your record straight without any errors whether the duplicated account has a good or bad account history.

  • Incorrect Account Data

After the duplicated accounts, you need to look for the unknown accounts. This is because the redundant accounts are still under your name, while the delinquent accounts don’t belong to you.

Well, it’s rare for credit reports to show other accounts in your history, but sometimes, it happens due to similar names or security numbers. 

  • Faulty Credit Activities

According to Trueindetity, faulty credit activities can be due to identity theft or identity fraud. That is where hackers use accounts; financial or personal information to make payments or do illegal activities.

Here are some activities that can hint your account is under attack:

  • A $5 transaction that you didn’t initiate
  • $10 tax deductions which you have no idea about
  • A $7 bill payment was deducted twice from your account
  • Inaccurate Account Balance

After the personal information error, the wrong account balance is the easiest to notice. But, unfortunately, what’s even more common is that you might miss it even after looking at it because people think it’s hard to get it wrong. Well, uncommon things happen at the worst times.

  • Your account balance value might be false (you have a negative $100, but it shows $150)
  • Your credit limit might be mentioned lower than the actual value (your credit limit is $500, but it says $300)

These were some of the commonly found credit errors. But, of course, there can be even more (let us know if you want us to cover them too).

Have you ever experienced any credit report errors? Then, mention it in the comments below!

How To Dispute Credit Errors Correctly?

You were looking through your credit report and found some errors. What are you supposed to do now? Dispute them? Yes, you know you need to fix them. But, how to do so? 

What can you do about the credit report errors without hurting your credit score or history? Are you thinking about it looking at the errors? 

Let’s find out the answers to your queries with these easy steps to take!

  • Look For Errors

It’s better safe than sorry. You don’t want to dive right into the process without confirming anything. Give a thorough read to your credit report and analyze every detail of it. If you find any error, note it down and keep proof of it (to submit later).

  • Check the credit reports of all the top credit reporting bureaus
  • Find the common errors and note them
  • Double-check everything before reporting it to the bureaus

Now that you have found the errors, let’s move on to the next step:

  • Keep The Evidence

Finding the errors is not enough to dispute them the right way. You must have proof of everything. Yes, it’s written right there on your credit report, but you need to show the evidence to prove your claim.

  • Screenshot the errors
  • Gather the proper documents with correct details
  • Collect the receipts
  • Have the statements ready
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Have a record of everything if the bureau asks you to submit the evidence.

  • Get In Touch With Your Credit Bureau

Now that you have your case ready and backed up by the evidence, it is time to report it to the credit bureaus. The top authorized credit agencies are:

  • Equifax
  • Experian
  • Transunion

There can be different ways to contact your credit bureau: 

  • File a complaint online by filling out the form and submitting the documents
  • Visit any credit agency branch and talk in person about the issue
  • Give them a call and discuss the process about what you can do to fix the errors
  • Contact Your Authorized Company

This step is crucial if you want a smooth and fast dispute process. After you have submitted the form for the dispute, you must inform your credit card agency about it. 

Take them on the same page with your credit error situation. Moreover, it is best to ask the company about the issues and let them report the errors directly to the bureau. 

This way, you can get a quick update on what’s going on with your credit report.

  • Patience Is The Key 

The last step in disputing the errors is to remain calm during the whole process because it will take time for the bureaus to look into the case and investigate it. 

  • You should wait for at least 30 to 45 days to check the update on your case as it is the set time demanded by the bureaus or company to investigate your case
  • You can also submit an additional 400 characters statement to the bureau if you’re not contented with the results they provide you with

Lastly, ensure you provide the correct and complete details to avoid a delay in your results.

FAQ

Before concluding this article, let’s read answers to some of the frequently asked questions. Let us know if you have any more queries. We’ll be happy to answer those!

Who do I call to dispute errors on my credit report?

You can call the top three credit bureaus: Equifax, Transunion, and Experian, to dispute your credit report errors. Then, fill out the application form and mention every issue with evidence to support your case. Finally, write the errors with ‘why’ you think they’re wrong.

Should I Complain Directly To The Credit Bureau?

Yes, you should report the incorrect information directly to the credit bureau for the best outcome. But, you should also get in touch with your credit card company as the organization is responsible for providing false information to the bureau.

Can I sue my company for a false credit report?

Yes, you can sue your credit card company or authorized organization for wrong reporting. In addition, you can ask for compensation for the damages you had to face.

For instance, you can ask for money or a reward for the loan or insurance you missed. You can also get a ‘general’ compensation for the mental pressure or health damage.

What is the best way to dispute credit errors online?

Fill out the form on the website with all the details about the errors. Also, attach receipts, bank statements, and documents to speed up the dispute process.

Conclusion

Keeping your credit report clean and free of errors is as crucial as building and maintaining a good credit score. Because fault in one will impact the other, thus affecting your chances of having a happy financial life. 

So, you must make a habit of balancing both. And, to help you out in doing so, we have mentioned common credit report eros you can find in your report.

We have also explained how you can dispute and fix those errors the right way without affecting your report, making this guide a complete package for you. So, give it a read to be the credit pro you are.

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Your Credit Report