Many consumers have inaccurate or false information on their credit report – and they don’t even know it. They discover this fact when they attempt to use their credit to purchase a car or a home or obtain a credit card. The denial they receive in response to the credit check usually inspires them to look at their credit report a little closer. Why does inaccurate information end up on consumer credit reports so frequently? How can consumers protect their credit report and prevent inaccurate reports from affecting their finances and their life? If there is incorrect information negatively reflecting on your credit report, how is it cleared?
Why are there Credit Report Errors?
There are several reasons errors can occur on a credit report. Some of the most common are:
- Credit reporting agencies manage their records using computers. They rely on technology to compile information, and computers don’t always get it exactly right. Similarly, named consumers may find their records intermingled. Closely related individuals (i.e., sisters, brothers, etc.) may discover the same problem.
- Paid debts are not always accurately reported by creditors. If the credit reporting agency does not receive an updated report on a debt from the creditor, the report will not offer an accurate reflection of the consumer’s credit status.
- Identity theft is also becoming a more significant problem. If someone steals a consumer’s identity, false information will likely end up on their credit report.
How Can Consumers Protect Their Credit Report?
More than ⅓ of Americans have never even looked at their credit report. An even higher number of Americans have never taken the time to check their credit report regularly. If you want to protect yourself from inaccurate information on your credit report, you should:
- Access your free annual credit report to check it for mistakes and false information.
- Protect yourself against identity theft. Check both bank and credit card statements regularly so you can report any unfamiliar activities. Any unknown transactions should be reported immediately. Change passwords frequently, try to use credit cards to make online purchases, only purchase from secured websites, and be careful of scams.
- Dispute any reporting errors directly with the company involved. The sooner you contact the company regarding credit reporting errors, the less of a negative impact they have on your credit and your life.
- Get in touch with an experienced consumer protection attorney for assistance in taking legal action to have incorrect information removed. In some cases, the credit reporting agency may even be required to pay you compensation for trouble as well as covering attorney’s fees associated with the matter.
Do you have incorrect or false information on your credit report? Don’t wait for it to do more damage. Get in touch with Aronow Law PC today so an experienced consumer law attorney can help you protect your rights as a consumer.