Tips to Prevent Credit Reporting Inaccuracies

Having an accurate credit report is essential to your financial health. Financial companies rely on this report to decide whether to issue a loan and at what interest rate. Additionally, it can be difficult to rent an apartment or even get a job with a poor credit score.

Unfortunately, not every poor credit score is the consumer’s fault. Errors on credit reports are common and can remain in effect for years. It is essential that all consumers act quickly to identify these errors and make corrections.

It is best if people can prevent these errors from occurring in the first place. By following a few simple tips to prevent credit reporting inaccuracies, consumers can help to preserve credit health for years to come.

Review the Credit Report as Often as Possible

The best way to ensure accuracy is to check a credit report. Many companies offer free credit tracking, and federal law allows every person to obtain a full credit report from each of the three credit agencies without charge once a year.

When you receive this report, be sure to check it for accuracy. This includes not just evaluating the report for accurate payment history but also checking the spelling of your name, the list of your addresses, and your birthdate. A mixed credit report occurs when a credit agency combines your credit report with that of another person. A quick check of this vital information can help to ensure that an error does not occur in the future and can allow people to demand a fix from the credit agencies.

Be Sure to Provide Accurate Information to Lenders

Making the decision to open a new line of credit is always a major step in a person’s financial life. While it is true that these lenders will perform a credit check, they will also use the personally identifying information that you provide to open the new account. Any typo, mistake, or another form of error that you provide on these applications will transfer onto the account.

When completing an application online or on paper, be certain to double and triple check the spelling of your name, your birth date, and that your address is correct. While this may seem simple, small errors such as these are a major source of credit report inaccuracies.

Track Your Payments and Account Balances

The core portion of any credit report is a person’s history of making payments. Unfortunately, the lenders and banks that oversee these payments can make mistakes in crediting a payment or closing out an old account.

Consumers should remain aware of the status of their accounts. Open accounts with no balance can have a detrimental effect on a credit report. Even worse are allegations that a payment was late, or an account was in arrears. Lenders have an obligation to provide accurate data to the credit reporting agencies but will not act to fix an error unless a consumer brings that error to their attention.

Follow These Tips to Prevent Credit Reporting Inaccuracies

Everyone deserves to have a fair and accurate credit report. However, many times through their own mistakes or oversight, these reports may contain inaccuracies. An inaccurate credit report can make it difficult to obtain a line of credit, to rent property, or even to get a job.

You can take a few simple steps to prevent credit reporting inaccuracies. These include tracking your payment history and account balances, ensuring that you provide accurate personal information when opening an account, and obtaining a free credit report to check for any ongoing issues. Call Lott Law today to learn more about how you can prevent credit reporting inaccuracies.