How Errors In Credit Report Can Affect Your Score?

How Errors In Credit Report Can Affect Your Score?

How Errors In Credit Report Can Affect Your Score

Credit report contains all the information about your credit history and credit score. A good score is crucial to enjoy benefits of the best credit cards of 2016. Your loan may be rejected if there are any problems in your credit report. But it is not necessary that all the information present in your report is correct. There are always chances of errors and mistakes. One should always be updated about one’s report so that if there are any mistakes, they are timely attended. So, how to examine your credit report and make sure all the information provided is correct?

The first step is to read out all the contents of the report. Any small thing, if ignored, can seriously impact your credit score. You need to make sure all your personal details mentioned in the report are correct. Suppose one of your jobs is missing, it will affect your credit score. Similarly, what if an account has been included in your report that does not belong to you and its balance is outstanding. You also need to check that all the account numbers mentioned in the report are correct. Similarly, if there are any old closed accounts on your report that were in good form, you need not to remove them as they will have a positive impact on your score. Most often, negative information remains on your report for seven years. You need to make sure that after seven years, this information gets removed from your report.

You also need to make sure only those accounts exist in the report that are actually in your name. It is possible that an account exists in the report but you do not own it. This may be the case of identity theft so you need to be careful. Similarly, when a creditor sells your account to a collection agency, it is possible that the previous account with the original creditor still exists in the report. In this way, the number of your outstanding accounts will double in number.

If a problem exists in your report, the first step to take is to make sure it only exists in just one report. For that purpose, you need to get all the three reports from the three credit rating agencies and read them thoroughly. If the problem is just in one report, you can go for the dispute resolution process. You can either fill out the online dispute resolution form or use the conventional way of mailing. In both cases, your problem will be solved once the agency takes required action. But you need to take follow up and make sure that the said incorrect information has been excluded from your report. But if the wrongful information exists at the creditor’s end you need to contact him and make him resolve the issue. To benefit from the best credit cards of 2016, you just need to make sure that only truthful information has been written in your report.

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