Unfortunately, many consumers are unaware of the process involved with checking their credit, which can lead many to remain unaware of any errors that may be on their report. As such, it’s critical to understand the long term impact that credit report errors can have on your finances to ensure you regularly check your credit report to ensure the information is accurate. If you’re unsure what errors are most common or the impact they can have on your life, you’ll want to keep reading. The following blog explores what you should know about these matters, including the importance of working with an inaccurate account information disputes lawyer to help you fight for the best possible outcome.
What Credit Reporting Errors Are Most Common in California?
In general, there are two primary forms of credit report errors that can impact your finances as a consumer. The first are errors related to the personal information listed on your account. This includes matters like a misspelling of your name, an outdated address, or an incorrect Social Security number. Generally, this does not have a direct impact on your credit score. However, if you apply for and are denied loans because the information on your account does not match what’s on the application, this can lead to a decrease in credit. This is because every time you apply for a loan, the lender will conduct a hard inquiry. While these only decrease your score by small amounts, when you must continually apply for loans because you are repeatedly denied, the loss of points can add up.
The other type of errors you may find on your credit report is much more impactful. These are account errors and can directly impact your credit score. Common examples include, but are by no means limited to, the following:
- Duplicate accounts
- Listing accounts as delinquent
- Incorrectly reporting payments as missed or late
- Incorrect account balances
- Including previously discharged debts
- Including debts that should have fallen off
- Mixed credit files
How Can These Mistakes Impact My Finances in the Long Term?
Credit report errors, when left unchecked, can result in serious issues for you and your finances. One of the primary impacts you’ll find is that credit errors can decrease your credit score, making you appear as a risk to lenders. As such, you may be approved for loans, but only with a much higher interest rate. As such, you can pay significantly more on the loan than what you would have been approved for if your credit were correct. For many, this can start a cycle of debt, as you may struggle to afford the terms of your payment, ultimately resulting in missed or late payments that then decrease your credit score even more.
You’ll also find that unchecked credit report errors can make it more difficult to secure loans, as the lenders may see the incorrect information about you and assume you are too much of a risk to extend credit to. This can drastically impact your ability to procure important loans like auto loans or mortgages.
As you can see, when left unchecked, credit errors can run rampant in your life as a consumer. As such, it’s in your best interest to regularly check your credit report to ensure that the information included is accurate. In the event you locate errors, working with an experienced attorney with Loker Law can help you remedy these issues. Our team will work on your behalf to fight to have the incorrect information removed from your credit report so you can rest assured that your report is accurate. When you need help, our team is here. Contact us today to learn more.
