September 8th, 2011
3 Common Credit Report Errors
Let’s face it – everyone makes mistakes, and credit bureaus are no exception. The numbers vary, but it’s reported that anywhere between 3 and 25 percent of credit reports contain an error. These errors often go overlooked, and can hurt your credit score.
Pulling your credit reports from each of the three major credit bureaus and checking them for errors is an easy first step towards better financial health. By going through each item on your credit report, you may find errors that can be corrected, which can boost your credit score.
Here are the most common errors to look out for when reviewing your credit report.
Outdated personal information
The three credit bureaus (Experian, Equifax, and TransUnion) each have their own database. This means that your basic contact information, including your name and address, can vary between the three. If you have changed your name or recently moved, it’s a good idea to make sure that your information is up to date at all three bureaus. This will cut down on any confusion when you apply for credit in the future.
Mistaken or fraudulent accounts
After checking your basic information, it’s a good idea to count the total number of accounts listed on your credit report. A mix-up in credit files can create confusion between you and someone who lives at the same address or has a similar name as you. This can cause an account to be accidentally placed on your record. Along with mistaken identity, theft is also a major concern. Knowing how many open accounts you currently have reduces the likelihood of having credit cards open fraudulently in your name.
Incorrect account details
Aside from the number of accounts on your credit report, be conscious of the specific information for each account. Clerical errors can mislabel the type of an account on your record, which can negatively impact your score. For example, a home equity line of credit should be labeled as such, and not merely a line of credit. Having a good mix of credit will improve your score, but only if your accounts are reported correctly. The same can be said for your credit limits, which is a crucial part of calculating your credit card utilization. If the credit bureau is reporting your credit card limits as too high or too low, this can possibly impact your credit score.
What does it all mean?
Now that we’ve covered the most common errors, check out this helpful post with instructions on how to dispute an error on your credit report. Being aware of these types of errors can help you proactively spot them on your credit report, and start you down the path to improved credit health.
Give credit where credit is due,
Danielle Belfatto, Karma Contributor
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I’m really having trouble with credit reporting errors. I just recently paid off an installment loan (signature loan through my bank)and my credit score has dropped significantly.
On Credit Karma, it dropped my total number of accounts by one as well as open accounts. My total of closed accounts should have increased. It remained the same.
It also dropped my average length of credit hisotry.
I’ve noticed that two perfectly good mortgage accounts (paid in full) and an auto loan (paid in full) have been deleted. Niether one of these accounts had a late payment.
Since it is extemely difficult to get an account with derogatory information deleted from credit bureau accounts, why are the credit bureaus so calvalier about deleting accurate positive accounts?
I would think that a mortgage account paid in full with no late payments would be a stellar item to have on a credit report these days.
And these aeren’t the only paid in full with no late payment installment accounts that have been deleted from my credit bureua reports. And it is virtually impossible to get the lenders to go through the trouble of reporting these accountgs again.
This is keeping my credit score lower than it should be. Who is responsible for restoring these accounts?
Hi, there! If I were you, I would get a copy of my credit reports and go through each account. Some of these may actually be incorrect, so it’s best to check with the credit bureaus directly.
Once you pay off your credit cards it is a good idea to leave them open and just not use them. A lot of people foolishly close their accounts after paying off their debt.
Also bare in mind that credit repair actually takes time and if a business is promising you overnight repair they are fake.
I have credit cards that I’ve paid as settlements to clear my account out w these companies. Is it possible, and will it help my credit score, to try to have these, now closed accounts, removed from my credit report? Also, I show a collects account that I’m sure is not one that should be there anymore, how can I find out this companies information to contact and correct this issue?
Thank you
In a divorce settlement I was given our family car that, at the time was only year old at best. Turns out my ex financed it under his name only and although I gave been the one making ALL the payments since the settlement, which was 4 yrs ago, he is the one getting the good standing for it, not me. Is there anyway for me to show proof of my payments and get all that upstanding payment history to credit MY credit report instead if his???
Thank you!
It might help your credit score to have those accounts removed, but the creditors might not be so willing to do so. You can also try to convince them to put a “paid-settled” note on the accounts. To find out more info about the collections account, pull a copy of your full credit report from AnnualCreditReport.com.
I doubt there’s a way to retroactively finance the auto loan, but we recommend checking in with our Credit Advice Center to see what the Credit Karma community has to say.
i was trying to get my credit corrected i have never had a t mobile phone.com
If there’s something wrong in your credit report, here’s some information on how to dispute errors: http://www.creditkarma.com/article/dispute-credit-report-errors
Thanks for putting this article out it is so true…we see this everyday. This is why Credit Coach is here.If you need help contact Credit Coach http://wecoachcredit.com/.
my car got repo’d in 2004 but it just popped up on my credit that i owe over 6000. dollars on it. That was 8 years ago. I don’t owe on a car that they repossessed. What should i do?
My partner and I stumbled over here from a different website and thought I
might as well check things out. I like what I see so now i’m following you. Look forward to checking out your web page repeatedly.
There are many things on my credit report that I have no idea what they are.