Through the major credit reporting agencies, bureaus and credit providers, users are able to dispute credit reports, to correct errors. By this, present errors in the credit report can be solved and corrected. These errors vary in type, source and effect to the credit report and credit score respectively.
Types of errors on credit report
The credit report errors mostly originate from the point of data entry into the system. Also known as the errors of omission and commission, they occur when data is being entered and fed into the system. There are different types of credit report errors below.
Incorrect dates and personal information
This is the very basic type of credit report errors. It occurs when your credit report shows dates that are not correct and incorrect personal information such as name spellings, workstations, addresses, accounts held and other specific information. These errors are very simple to correct, as they need no thorough investigation. If not corrected through the set avenues, they display personal irresponsibility, carelessness and high-level negligence of the owner, which can harm your credit score.
Accounts over 7 years
By law, any information reflecting in your credit report, which is more than 7 years old, should be removed and scrapped from your credit report. Apparently, you find that some information, mostly negative, that should have been removed from your credit report still shows, harming your credit score real bad. Therefore, late bill payments and fines charged which occurred more than 7 years ago, should not appear in your credit report. Such errors should be reported and the necessary credit report corrective measures taken.
Wrong account charges
This is the main and most common type of credit report errors. It occurs when incorrect figures and amounts are entered in the credit report. Maybe in form of higher interest rates charged, amounts debited being over what was actually used, loans that you did not actually get and other service charges not applicable. These errors directly and instantaneously affect your credit score and consequently your accessibility to credit and credit worthiness negatively.
How to report errors on credit report?
After understanding the most common types of credit report errors, the predicament now becomes how to notice, report and correct errors on a credit report. It is very simple to correct errors. Proper reading and regularly checking your credit report will enable you to notice errors, which would be negligible.
The question ringing in many people’s heads now becomes, ‘What next after noticing the errors?’ Filling a credit report dispute is the answer. All credit reporting agencies and bureaus have set procedures of disputing credit report, which allows reporting credit report errors which later lead to correction of the errors.
Mostly through online portals, or through the mailing system, credit report errors are reported to the necessary authorities. It is advisable however, to dispute each error in the credit report separately, if at all there exists more than 1 error; it ensures separate consideration in solving and correcting each error, which is more effective.
Time to correct report errors
The time span of getting errors in the credit report corrected after filling a credit report dispute depends on among other things, the type of error and the severity of damage caused by the error(s). On average though, it takes between 30-45 days to get an error investigated and corrected.
Noticing credit report errors, taking the step to report the errors to the necessary authorities through disputing a credit report and getting the credit report corrected is very significant in ensuring a well managed and controlled financial life. Don’t wait act now! Correct errors in your credit report and secure a healthy financial future.