10 Most Common Credit Report Errors And How To Dispute Them

Your credit report plays a significant role in your financial life, influencing your ability to secure loans and credit cards, and even impacting your insurance premiums. A good credit score can open doors to better financial opportunities, but credit report errors can negatively affect your score. Unfortunately, such errors are more common than you might think. 

In this post, we'll explore the ten most common credit report errors and provide guidance on how to dispute them to safeguard your credit health.

Incorrect Personal Information

One of the most common errors on credit reports is incorrect personal information. This includes misspelled names, wrong addresses, or incorrect Social Security numbers. Mistakes of this kind will mean that you’ll be disputing an error on your credit report.

To do so, contact the credit bureau(s) reporting the mistake and provide them with the correct information, along with supporting documents such as a driver's license or utility bill.

Duplicate Accounts

Duplicate accounts occur when a single account appears multiple times on your credit report. This can happen due to various reasons, including clerical errors or different creditors reporting the same account. 

To resolve this issue, contact the credit bureau and the creditor to confirm the account's validity and request its removal if it's a duplicate.

Outdated Information

Credit reports should only display negative information for a specific period (typically seven years for late payments and ten years for bankruptcies). 

If you find outdated negative information on your report, contact the credit bureau and request its removal, providing supporting documents if necessary.

Unauthorized Hard Inquiries

Hard inquiries occur when a lender checks your credit report as part of their decision-making process. Unauthorized hard inquiries may happen if someone fraudulently applies for credit in your name or if a lender checks your credit without your consent. 

Dispute unauthorized hard inquiries by contacting the credit bureau and the creditor involved, providing any evidence that you did not authorize the inquiry.

Incorrect Payment History

Payment history is a crucial component of your credit score. If your report shows late payments when you've always paid on time, it's essential to dispute the error. 

Contact both the credit bureau and the creditor, providing documentation such as bank statements or canceled checks that prove your timely payments.

Closed Accounts Reported As Open

Sometimes, credit reports may show accounts as open even after they've been closed. This error can negatively impact your credit utilization ratio. 

To correct this mistake, reach out to the credit bureau and the creditor, providing proof of account closure, such as a letter from the lender or a final account statement.

Incorrect Account Balances Or Credit Limits

Your credit report may display incorrect account balances or credit limits, which can affect your credit utilization ratio. To dispute these errors, gather documentation such as recent account statements and contact both the credit bureau and the creditor to request a correction.

Fraudulent Accounts

If you notice unfamiliar accounts on your credit report, it could be a sign of identity theft. Act quickly by placing a fraud alert on your credit report and filing an identity theft report with the Federal Trade Commission (FTC). 

Contact the credit bureau(s) and the creditor(s) involved to dispute the fraudulent accounts and provide any evidence supporting your claim.

Merged Accounts

Merged accounts occur when the credit information of two different individuals gets combined, typically due to similar names or Social Security numbers. To resolve this issue, contact the credit bureau(s) reporting the error and provide documentation to prove that the account(s) in question is not yours.

Negative Information Belonging To Someone Else

Sometimes, your credit report may contain negative information that belongs to someone else. This can happen due to clerical errors, mistaken identity, or mixed credit files. 

To dispute this error, contact the credit bureau(s) and the creditor(s) involved, providing proof that the negative information does not belong to you.

Conclusion

Credit report errors can have a significant impact on your credit score, potentially hindering your access to financial opportunities. By familiarizing yourself with the most common credit report errors and understanding how to dispute them, you can take control of your credit health and safeguard your financial future. Remember, it's essential to review your credit report regularly, as this is the first line of defense against inaccuracies and potential fraud.