Errors on your credit report can cause you to be denied a loan or to experience other negative impacts on your finances. It’s essential to leverage the opportunity to look at your credit report regularly so that you can identify any errors and promptly report them. Since it takes time to report these errors, you must know the process for letting the agencies know that a mistake has appeared on your report.
According to research, over 80% of the complaints lodged against the three major credit bureaus have to do with mistakes on reports. If you have further questions about how your financial history and your credit report impact you, speak with Daniel Ciment, a recognized consumer advocate, debt resolution, and bankruptcy attorney with over 15 years of experience in debt collection defense and consumer protection in Katy, Texas.
The Three Credit Bureaus and How to Check Your Credit Reports
Three different credit reports gather information on your financial history. Companies or individuals running your credit might check one or a combination of the existing ones. Not all of your credit reports are guaranteed to be identical, so you want to verify that you have a copy from each of the major bureaus to review for potential mistakes.
Each credit bureau allows you to get one free copy of your credit report every 12 months. Put an annual reminder on your calendar so that you can make use of this each year. If you’re getting ready to apply for a big loan, want to see if something has dropped off, or have concerns over mistakes on your credit report, you can pay a fee to see versions of these more often.
The three major credit reporting agencies are:
Visit www.annualcreditreport.com to make use of the free report from each agency once per year.
6 Most Common Mistakes That Appear on Credit Reports
A variety of different errors can appear on your credit report. The most common include:
- Those associated with personal information, like mistakes involving your name or addresses on file.
- Open accounts that don’t belong to you or duplicate open accounts.
- Inaccurate balances on your open accounts.
- Accounts showing as “closed by lender” even when it was you who paid it off and closed it
- General reporting errors, like on-time payments being reported as late or closed accounts that show as open.
- Debts that are older than seven years, which is the point at which they should drop off your report.
What Are the Consequences of Inaccurate Credit Reports?
If you’re planning to open a line of credit for something big, such as a home loan, mistakes on your credit report could lead to unnecessary denials of a loan or loan amount. You don’t want to find this out after the fact. You might be waiting to make a big move financially based on details dropping off your credit reports, such as a delinquent account older than seven years or a bankruptcy from the past.
But suppose the credit reporting agencies wrongly show these as open or display them on your account inaccurately. In that case, you want to know about this before applying for a line of credit so that you have ample time to dispute these listings. Simply put, you don’t want a mistake caused by someone else to cause you to miss an opportunity.
I Found Mistakes on My Credit Report. Now What?
It’s your responsibility to notify the credit bureau about mistakes on your report. It’s usually straightforward to start this process online with the account you used to log in and see your credit report. You’ll need to submit proof that the report is inaccurate. For example, if a debt that was fully paid off some time ago is still showing as active on your account, contact that company or debt collector to submit full proof of its paid-off status.
How Does the Ciment Law Firm, PLLC’s 3-Step Process Help You Take Control?
When you’re in over your head financially, one of the most common emotions is the feeling of loss of control. To take charge again and get your life back on track, you might need to file bankruptcy and use the support of the dedicated bankruptcy attorneys with experience in debt collection defense and consumer protection at Ciment Law Firm, PLLC. You need a Texas Consumer Protection Firm with years of experience when it’s time to seek help. You want to know that your chosen lawyer has a plan in mind for you.
There’s where our 3-step process assists you. That process includes:
- Resolving your debts
- Protecting your rights
- Rebuilding your credit
See, we don’t think of bankruptcy as the last step and wish you well on your way. We want to help you get the fresh financial start you need, and our 3-step process is crucial for that.
Schedule Your Free Consultation with Ciment Law, PLLC
It’s possible that even once you have removed errors from your report that there are still negative events and factors listed there. If so, it’s crucial to ensure that you have the chance to speak to a Texas consumer advocate bankruptcy attorney like Daniel Ciment. Contact Ciment Law Firm, PLLC, to schedule your free consultation by filling out the form or calling us at (281) 937-3949.
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Disclaimer: The information in this document is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
Ciment Law Firm, PLLC
24275 Katy Freeway, Suite 400
Katy, TX 77494