MICHIGAN CREDIT ATTORNEYS: COMMON CREDIT REPORT ERRORS

MICHIGAN CREDIT REPORT ATTORNEYS DISCUSS COMMON CREDIT REPORT ERRORS

Have you ever felt something just isn't right with your credit report? You're not alone. It is estimated that tens of millions of Americans have credit report errors that they may not be aware of, and that is harming their credit report. Many people fall victim to common credit report errors because they either do not check their credit report, or do not understand their credit report.  In this article, we hope to shine a light on some of the most common credit report mistakes that could be harming your credit report.

WHAT ARE CREDIT REPORT ERRORS

Credit report errors are inaccuracies or materially misleading information that can appear on your credit report. Credit report errors can affect your credit score and various financial ratios that are used by creditors and lenders to offer credit or financing.  These errors can be costly, and can lead to higher interest rates or the outright denial of credit opportunities.

​Credit report errors can range from simple spelling mistakes to more serious issues like identity theft or fraudulent accounts opened in your name.

TYPES OF COMMON CREDIT REPORT ERRORS

1. Incorrect Personal Information
One of the most common credit report errors involves incorrect personal information such as misspelled names, wrong addresses, or incorrect contact details. These errors may seem minor, but they can lead to mixed files where your identity is mistaken with another's identity.  This can lead to account that do not belong to you being reported on your credit report.

2. Duplicate Accounts
Duplicate accounts can occur when the same account is listed multiple times on your credit report. This type of credit report error makes it appear as if you have more debt than you actually do.  A duplicate account can be an account listed by the same furnisher, or the same balance listed by the original creditor and an assignee such as a debt buyer or debt collector. This type of credit report error can negatively impact your credit score and borrowing potential.

3. Inaccurate Account Status Such as Balance 
Another common credit report error are mistakes in the account's status. For example, a closed account may be reported as open, or a paid-off debt may still show as outstanding. Your balance may also be reported higher than the balance actually is thereby impairing your credit utilization ration. These types of credit inaccuracies can also damage your creditworthiness.

4. Identity Theft
Identity theft is a serious credit reporting issue that can result in fraudulent accounts being opened in your name without your knowledge.  Detecting identity theft and promptly disputing identity theft accounts on your credit report is crucial to protecting your credit.

HOW TO DETECT AND CORRECT ERRORS

Regularly checking your credit report for errors is advisable. If you suspect that there are errors on your credit report, you should take action immediately. Start by requesting a free copy of your report from each of the major credit bureaus Equifax, Experian, and TransUnion. You should carefully review these reports for any discrepancies, and should consider the assistance of a credit report attorney to help you review your credit reports for errors. If you identify credit report errors, follow the bureau's dispute process to have these errors corrected.  

Disputing your credit report is free and you have the right to do so under the Fair Credit Reporting Act.  Therefore, be wary of any company or so-called "credit repair company" or "credit report expert" who charges you a fee to help you dispute or repair your credit or who promises to improve your credit.  Nobody has the legal right to remove accurate credit reporting that is reported in compliance with the Fair Credit Reporting Act.   There are plenty of scammers in the credit industry so you should check with a credit lawyer or other consumer protection organization like the Consumer Financial Protection Bureau (CFPB). 

SPEAK TO A KNOWLEDGEABLE MICHIGAN CREDIT LAWYER

We have helped countless consumers recover damages under the Fair Credit Reporting Act (FCRA) for inaccurate credit reporting and credit report errors.  Attorney Nick Hadous is an accomplished litigator and serves on the Litigation Advisory Board for the Institute of Continuing Legal Education (ICLE) where he is a content contributor and author in consumer protection litigation including the FCRA.  If you have errors on your credit report that you would like to discuss, please contact us for a free phone or Zoom consultation by calling us today or using the contact form below.