Finding Errors On Your Credit Report

Finding errors in your credit report can be a painstaking and time consuming process, and is worth every tedious second!

If you start getting credit when you are 18 years old and live to be 80, credit will affect 78% of you life.

First and foremost, get a copy of your credit report. Knowing what is in your credit report puts you in control and tells you what needs to be corrected.

You can obtain a copy of your credit report from any of the tree major credit reporting agencies: Equifax, Trans Union, and Experian. It is a good idea to get a copy from all three agencies or obtain a consolidated credit report, especially if you are thinking of buying a house or refinancing. Mortgage companies will use data obtained from all three agencies when reviewing your credit history.

Review your credit report thoroughly; make sure to correct any errors and incomplete information. By doing this, you are making sure that your credit history is accurate and that your credit score is correct when requested.

According to Fair Isaac, the wrong ZIP CODE can decrease your score by 5 to 10 points because of the Geographical Code used.

When reviewing your credit report, pay particular attention to the reason codes, so that you can improve them. Your credit score might be accompanied by a maximum of four reason codes which are alphanumeric codes set by FICO to understand how and why you received a particular score. Learning these codes is fundamental in the improvement of your score later on.

Personal information is the next area to concentrate your focus on. If the incorrect Zip Code can decrease your score, imagine what impact the incorrect spelling of your name will have.

Lastly, verify all of your accounts. Always verify account information in writing. Keep meticulous records of all correspondence so you have a paper trail and proof of the verification of information.

According to the Fair Credit Reporting Act, creditors have 30 days to verify all information they report on in your file, and if they can’t the information needs to be removed.

Listed below are just a few common mistakes I have personally found on credit reports.

· Incomplete or wrong name, address or phone number

· Wrong social security number or birth date

· Missing, wrong, or outdated employment information

· Incorrect marital status – showing single when married or vice versa

· Bankruptcies older than 10 years or not identified by the specific chapter of the bankruptcy code

· Judgments or lawsuits older than seven years

· Delinquent account older than seven years or that omits the date of the delinquency

· Paid tax liens older than seven years

· Credit applications older than two years

· Credit histories for someone with the same name or similar social security number

· Premarital debts of your current spouse attributed to you

· Lawsuits you were not involved in

· Wrong account histories, such as a debt shown as past due when it was discharged in bankruptcy or a late payment note when you paid on time

· Paid judgment, tax or other liens listed as unpaid

· Closed accounts still listed as open

· Accounts closed by you, that don’t indicate “closed by consumer”

Now you know what to look for. Read through my past posts to know what to do once you have found inaccurate information.