Credit Report Errors and Why They Should be Prevented

Consumers like us need to check on our credit reports regularly. Doing so, we can find out what will or what is keeping us from getting the best loans or ordinary loans with affordable interest rates. This credit report serves as a written statement documenting our credit activity for the past few years. Some of the credit activities included in the credit report includes the payment history of all our credit, our credit accounts and balances, and our debt to income ratio. Your credit report as well as your credit score will be the deciding factor that creditors will consider when you apply for a loan. This is why it is very necessary to have your credit reports checked for the authenticity of data.

A sad reality about credit reports is the fact that a number of information from some individuals that are recorded in their credit report is not true. If you are one of these people, then these discrepancies will taint your creditworthiness badly. Instead of getting the credit report you deserve, you will be given a damaged credit report and score due to the errors in it.

Statistics of Credit Report Errors

Recently, disturbing statistics have been discovered about the frequency of credit report errors. One such statistic was found from a recent study by the United States Public Interest Research Group that saw at least 25 percent of credit reports that had errors leading to the denial of an application for credit. A further 79 percent of their surveyed credit reports had an error or mistake, which was either small or major.

Other Credit Report Error Statistics

About 8 percent of credits, mortgages, loans, or other credit accounts that have been paid responsibly were not listed. This could have lead to a more attractive credit report and a better credit score.

At least 30 percent of closed accounts were recorded as open. This happens when credit or loans that have long been paid off, are still recorded as active and ongoing credit. This can also apply to loans or credit accounts as well.

About 22 percent of credit reports recorded the same loan or mortgage twice or more. This severely affects the credit report owner and his credit score.

At least 50 percent of these errors involve incorrect spelling of names, incorrect Social Security numbers, wrong birthdays, wrong data about the spouse, and wrong address.

Effects of These Credit Report Errors

If you are a victim of these errors, creditors and lenders will have the impression that you can not pay the loan you have applied for. You will leave a negative mark on the minds of the creditor, even though you really have not done any mistake at all.

It is vital that you check your credit report regularly for errors. Doing so, you can make sure that everything listed in your credit report is up to date and true. Not only that, a credit report error that has been corrected immediately will also lead to an improved credit score, often immediately. Look for a legitimate and trusted credit report company or website like https://www.credit.com/ufg/default/id_guard_extra_caution that can provide your credit reports immediately and securely.