Errors on Credit Reports

A survey done in 2004 has revealed that about one in four credit reports contain errors. An earlier study conducted by Consumer Reports has found that over 50 percent of the credit reports that were checked contain errors. Some of the common mistakes in your credit report happens when you share the same name with someone else and that person's information ends up on your file. An entry of a wrong Social Security number could also result in a mix-up. You could also end up being a victim of identity theft especially if you happen to have a spotless credit history.

Errors on credit reports can be very damaging. It could result in getting higher interest rates and having a more difficult time in getting loans, insurance, and employment. It is important then that we should be vigilant in reviewing our credit reports and in filing important documents that can support our claims for credit report correction. Credit reports can be availed of free of charge once a year so better take advantage of this.

If errors are found on credit reports, it is best to go directly to the credit bureau. Send a letter that details the inaccuracies on your credit report, the corrections that should be made, and the pertinent documents that support your claims. It also helps to contact the creditor which was the source of the erroneous information. Also look out for signs of identity theft such as unfamiliar addresses or other suspicious information.