redit report errors and mistakes do happen. It is very possible that you have credit report errors. This is often due to the report being incomplete, or contains credit information about someone else. There are many ways as to how credit report errors can occur:
- The person applied for credit under different names (Robert Jones, Bob Jones, etc.)
- Someone made a clerical error in reading or entering name or address information from a hand-written application.
- The person gave an inaccurate Social Security number, or the number was misread by the lender.
- Loan or credit card payments were inadvertently applied to the wrong account.
How Often do Credit Report Mistakes Occur?
Public Interest Research Group, a nationwide consumer advocacy organization, released the findings of a recent survey showing that, on average, nearly 80 percent of US credit reports from the three credit bureaus contained some sort of mistake. The majority of the mistakes were minor misspellings or transposed figures.
However, the survey found that one out of every four reports contained serious errors, ones that could stop a person from getting a loan or getting favorable terms on a loan.
Effects of Credit Report Errors
Credit report errors will have an affect on your credit score is it is not corrected. Disputing credit report mistakes is the only way you can increase your credit score to its correct state. And after you correct the credit mistake, your credit score is likely to improve, if the credit report error is significant enough. Although you may find form letters to fix credit report errors from web sites, the best way to resolve credit report errors is to check your credit report and dispute the errors online. Credit bureaus have 30 days to respond to the credit report inaccuracies.