According to a study conducted by the Federal Trade Commission, one in five people have an error on at least one of their credit reports. Errors on your credit reports can lower your credit score, which could hurt your ability to get new lines of credit or make the terms of credit more expensive. Ultimately, these errors could be costing you money.
The good news? You can get a free copy of your credit report every 12 months from each of the three major credit reporting companies at AnnualCreditReport.com . You can request all three reports at once, or request one every few months to review your information throughout the year. And if you find errors, you can dispute the errors at no cost to you with both the credit reporting company and the company that provided the incorrect information.
Reviewing your credit report
Once you get your credit reports, you’ll want to review them carefully. You can use the list below to check for common errors and make sure your credit reports are accurate and up-to-date. Each of the credit reporting companies may have different information in your credit report – that’s why you should request your report from each of them.
Personal information
- Errors in your identity data, such as wrong name, phone number, or address
- Accounts belonging to another person with the same or similar name to you
- Incorrect accounts resulting from identity theft
Reporting of account status
- Closed accounts reported as open
- You’re reported as the owner of the account, when you’re just an authorized user
- Accounts that are incorrectly reported as late or delinquent
- Incorrect date of last payment, date opened, or date of first delinquency
- Same debt listed more than once
Balance errors
- Accounts with incorrect current balance
- Accounts with incorrect credit limit
Data management errors
- Reinsertion of incorrect information after it was corrected
- Accounts that appear multiple times with different creditors listed
FAQs
Dispute mistakes with the credit bureaus. You should dispute with each credit bureau that has the mistake. Explain in writing what you think is wrong, include the credit bureau's dispute form (if they have one), copies of documents that support your dispute, and keep records of everything you send.
What are 3 examples of errors you might see on you credit report? ›
Check for identity errors
- Errors made to your identity information (wrong name, phone number, address)
- Accounts belonging to another person with the same or a similar name as yours (mixing two consumers' information in a single file is called a mixed file)
- Incorrect accounts resulting from identity theft.
Some of the more common personal information or identity mistakes found on credit reports include: Incorrect addresses. Incorrect names. The wrong middle initial or middle name.
What is a 623 dispute letter? ›
A 623 dispute letter is a written communication submitted to a credit bureau, typically by a consumer, to dispute inaccuracies or discrepancies in their credit report.
How to fix your credit using consumer law? ›
If you do find inaccurate information, you can dispute it with the credit bureaus and request to have it removed from your credit reports. You have the right to dispute any negative listings on your credit reports that you feel may be inaccurate, untimely, misleading, biased, incomplete or unsubstantiated.
What are common credit problems? ›
Three common credit problems are: Lack of enough credit history. Denied credit application. Fraud and identity theft.
What are the three kinds of errors that can occur in financial statements? ›
Most accounting errors can be classified as data entry errors, errors of commission, errors of omission and errors in principle. Of the four, errors in principle are the most technical type of error and can cause the resultant financial data to be noncompliant with Generally Accepted Accounting Principles (GAAP).
What are minor errors on your credit report? ›
Credit report errors are not an unusual occurrence
But still, it's important to be on the lookout for errors, including seemingly minor ones, that could be bringing down your credit score. These include: Having the same debt listed more than once. Having incorrect personal loan or credit card balances listed.
What are the 11 words in credit secrets? ›
Summary: “Please cease and desist all calls and contact with me, immediately.” These are 11 words that can stop debt collectors in their tracks. If you're being sued by a debt collector, SoloSuit can help you respond and win in court. How does the 11-word credit loophole actually work?
How to remove collections from a credit report? ›
Here are steps to remove a collections account from your credit report:
- Do your homework and gather your evidence.
- Dispute the account if there's an error.
- Ask for a goodwill deletion if you paid the collections.
- Confirm the change you sought was made on your credit reports.
The immunity provision allowed credit card companies to evade the “reasonable and proportional” penalty fee requirement, as long as they stayed below a threshold. In our review, the CFPB found that this has turned into a massive loophole that has allowed companies to charge unjustifiably high fees ever since.
How to fix errors on a credit report? ›
If you discover errors on your credit report, gather any supporting documents and include them with a letter disputing the error. Then send it to: The credit reporting agency whose report you are disputing. The company that provided the incorrect information.
What is the most negative item on a credit report? ›
Negative information includes items such as late payments on loans and credit cards, delinquent accounts, charge-offs, accounts that have been sent to collection, bankruptcies, short sales, deeds in lieu of foreclosure, and foreclosures. A single hard inquiry can lower your credit score, usually by a few points.
What information is not found on your credit report? ›
Your race, color, religion, national origin, sex and marital status. US law prohibits credit scoring from considering these facts, as well as any receipt of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act.
What should be done when errors are found in credit statements? ›
If you identify an error on your credit report, you should start by disputing that information with the credit reporting company (Experian, Equifax, and/or Transunion). You should explain in writing what you think is wrong, why, and include copies of documents that support your dispute.
What is the legal action for incorrect credit reporting? ›
Under the Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681 and following), you may sue a credit reporting agency for negligent or willful noncompliance with the law within two years after you discover the harmful behavior or within five years after the harmful behavior occurs, whichever is sooner.
What three steps do you take if you find a mistake on your credit report? ›
Here's a step-by-step guide for how to fix credit report errors.
- Review all three of your credit reports. There are three credit bureaus that handle consumer credit scores: Equifax, Experian, and TransUnion. ...
- File a dispute. ...
- Wait for a response.
Contact the credit reporting company at 800-555-8800 or write a letter letting them know what information is not accurate, and Tell the creditor (the company that you are borrowing money from) that you are disputing an item on your credit report.
