Repairing Errors On Your Credit Report

Some experts say that as much as 70 percent of credit reports contain some type of error. And, around 25 percent of those errors are significant enough to prevent you from being approved for a loan. Experts also recommend that you obtain a credit report at least once a year to make sure the information is all correct.

Many consumers go for years and years without checking their credit reports. In fact, many will only find out there’s a problem when they’ve been turned down for a loan. By requesting a report on a yearly basis, you’ll be able to identify errors and rectify them before it’s too late.

Most common errors generally result in a reduction in your credit rating of from 20 to 30 points. However, more serious mistakes can decrease your rating 100 points or more. Especially if the error involves something as drastic as a bankruptcy or foreclosure.

As soon as you find an error, immediately contact the business that is involved. Get a statement showing that the debt has been paid off and keep track of all correspondence. And, inform the credit bureaus of the mistake. Creditors generally have 30 days to fix the error and it usually takes another 30 days for the error to be removed from your credit report.

1. 

   jeu says:

   December 1, 2009 at 11:36 pm

   Reflect on the ways errors can creep in. Sometimes automated processes take over and creditors send inaccurate information about people’s bill-paying habits to one of the major credit bureaus. In other cases, people’s identities accidentally get mixed up at the credit bureau when a staffer enters a Social Security number incorrectly. And sometimes people with fabulous credit histories become victims of blatant identity theft.