Common Credit Report Errors and How to Fix Them

Credit report errors are more common than most people realize. According to a study by the Federal Trade Commission, approximately one in five consumers has an error on at least one of their credit reports. These errors can range from minor inaccuracies to serious mistakes that significantly damage your credit score. This guide identifies the most common credit report errors and explains exactly how to fix them.

Why Credit Report Errors Matter

Even small errors on your credit report can have significant consequences. Inaccurate information can lower your credit score, result in higher interest rates on loans and credit cards, lead to denial of credit applications, cause you to be rejected for apartments or jobs, and increase your insurance premiums. Correcting these errors is essential for maintaining accurate credit and getting the best financial terms.

Personal Information Errors

While personal information errors do not directly affect your credit score, they can cause serious problems and may indicate identity theft or a mixed file:

• Incorrect name spelling or variations: Misspelled names or wrong suffixes (Jr., Sr.)
• Wrong Social Security number: Incorrect or partially wrong SSN
• Addresses you never lived at: May indicate identity theft or mixed files
• Wrong date of birth: Could be a data entry error or sign of identity theft
• Incorrect employer information: Wrong current or past employers listed

Account Information Errors

These errors directly impact how your credit accounts appear and can significantly affect your credit score:

Accounts That Are Not Yours

Finding accounts you do not recognize is a red flag. This could be due to identity theft, a mixed file with someone who has a similar name or Social Security number, or a creditor reporting error. If you find fraudulent accounts, take immediate action.

Incorrect Account Status

Common status errors include accounts showing as open when they have been closed, closed accounts reported as still open with a balance, accounts incorrectly marked as charged off or in collections, and joint accounts listed as individual accounts (or vice versa).

Wrong Credit Limits or Balances

Incorrect credit limits or balances can throw off your credit utilization ratio, which accounts for 30% of your credit score. If your credit limit is reported as lower than it actually is, your utilization ratio appears higher, which hurts your score.

Duplicate Accounts

Sometimes the same account appears multiple times, or a debt that was sold to a collection agency appears as both the original debt and the collection account. This double-reporting makes your debt load appear larger than it is.

Payment History Errors

Payment history is the most important factor in your credit score, so errors here can be especially damaging:

• Payments reported as late when they were on time: Can occur due to processing delays or creditor errors
• Wrong delinquency dates: Affects when negative items should fall off your report
• Missing payment history: Positive payment history not being reported
• Paid debts still showing as unpaid: Should show as "paid" or "paid as agreed"

Outdated Information

Negative information that should have aged off your credit report but is still appearing:

• Negative items older than seven years (except bankruptcy)
• Bankruptcy older than 10 years (Chapter 7) or 7 years (Chapter 13)
• Hard inquiries older than two years
• Collection accounts with incorrect date of first delinquency

How to Dispute Credit Report Errors

Follow these steps to dispute errors on your credit report:

1. Get your credit reports: Obtain reports from all three bureaus through AnnualCreditReport.com
2. Identify all errors: Review each report carefully and note every error you find
3. Gather documentation: Collect any evidence that supports your dispute
4. Write a dispute letter: Clearly identify each error and explain why it is incorrect
5. Send via certified mail: Keep proof that your dispute was received
6. Wait for investigation: The bureau has 30 days to investigate and respond
7. Review the results: Check that the corrections were made properly
8. Follow up if needed: If the error is not corrected, escalate your dispute

Get Professional Help

Disputing credit report errors can be time-consuming and frustrating, especially when dealing with uncooperative credit bureaus or creditors. At The Credit Repair Guy, we have extensive experience identifying and disputing credit report errors. Our team knows the strategies that work and can handle the dispute process for you. Schedule a free consultation to get started.