If you’re like most American adults, you know your credit score influences many different areas of your life. As such, understanding the errors that are most commonly found on credit reports and understanding the impact they can have on your score is critical. If you find credit report mistakes, understanding how they can influence your life and why connecting with an inaccurate account information disputes lawyer is critical. Keep reading to learn more about these matters.
What Are the Most Common Credit Report Mistakes?
You may find that, in general, there are two different kinds of errors that can impact your credit report. The first revolves around account information. These include inaccuracies regarding the accounts you have open. For example, if there is a payment reported as late, a duplicate debt listing, or a closed account listed with an active status, these can all impact your credit.
On the other hand, you may find errors related to the personal information on your accounts. Most commonly, this involves outdated information, like an old address that was never updated, or a misspelling of your name. However, you’ll also find that in some cases, you may be the victim of a credit mix-up which happens when your file is swapped with another person. This is often the result of a clerical error, especially if you have close Social Security Numbers or similar names.
Can Some Credit Report Errors Impact My Score More Than Others?
It’s important to understand that there are a variety of factors that can impact your credit score. Generally, account reporting errors can directly impact your credit score. However, how much it will drop your score will depend on your current standing. For example, you’ll find that a late payment will only drop a credit score by a maximum of 37 points for a “fair” account. However, if you have excellent credit, a late payment can shave up to 83 points off your score.
Just because personal information errors, like a misspelling, won’t directly hurt your credit score, you should still have these mistakes remedied. You may find these inaccuracies can impact your ability to obtain loans, as the information on your application will not match what’s listed on your account.
If I Notice a Mistake, What Should I Do?
If you find a mistake on your credit report, you can take the necessary steps to remedy the issue. Generally, the first thing you must do is file a dispute with the reporting agency. This includes printing a hard copy of the report, highlighting the incorrect information, explaining why it’s incorrect, and providing additional evidence. You should then mail this to the agency via certified mail, so you have proof the bureau received the dispute. Upon receipt, they have thirty days to investigate and remedy the information.
However, if your dispute goes ignored or is denied, understanding your next course of action is critical. You should know you don’t have to accept this. At Loker Law, our firm knows that your credit plays a significant role in your life, so it’s critical to ensure you take the necessary steps to protect yourself during these times. Connect with us today to learn how we can fight for you and help you get inaccuracies removed from your account to restore your credit.
