Why Mistakes Happen on Your Credit Report
There is a vast number of reasons why errors can occur on your credit report. The scary thing is, they can all have a negative impact on your eligibility for any future credit. It is crucial to regularly monitor your credit report in order to avoid any mistakes. The three credit bureaus to request information from are: Equifax, Experian and Trans Union.
The following are some reasons that errors are made:
1. The individual has applied for credit under several different names.
2. The individual gave an inaccurate social security number or
the number was misread by the creditor.
3. Loan or credit card payments were unintentionally applied to the wrong account.
4. Someone made a clerical error in entering or reading information
from a handwritten application.
5. Mix ups with common names. For instance, there is likely to be more than one Michael
Smith living in a large city and more often than not, there is a chance that information
intended for one Michael Smith might appear on the other Michael Smith’s credit report
located in the same city.
The erroneous information can reflect poorly on your file, which may cause approval problems when it comes time to apply for a job or obtain a mortgage. Should you find errors, no matter how small, be sure to get them fixed, and make sure that you contact all three credit bureaus with any changes.