How Common is it For Americans to Have Errors on Their Credit Reports?
Your credit report is often used to ”determine eligibility” which means a credit error can prevent you from getting a credit card, car loan or other types of financial assistance. As if that’s not enough, credit errors can hinder your chances of renting an apartment and even stop you from getting a certain job.
But how common is it for Americans to have errors on their credit reports?
In this article, we look at the frequency of credit errors in America and consider the most common inaccuracies to keep in mind when checking your report.
How Many Americans Have Errors on their Credit Reports?
Recent studies found more than 34% of the customers spotted at least one error on their credit reports. 41% noticed accounts they did not recognize and others reported ‘missed payments’ that were paid or late payments that were actually on time. As a result, thousands of participants in this study were found to be ”trapped into paying for services they neither want or need” and they also cited the credit reporting system as being difficult to access and navigate.
Another study by the Federal Trade Commission stated one in every five Americans were likely to have errors on their credit report. While this particular study was conducted some time ago, it still points to the fact that millions of Americans are suffering the consequences of inaccuracies on their reports.
In case you might be asking yourself, a credit error refers to a mistake or inaccuracy on a credit report. These errors are sometimes easy to identify such as a mistake in a name or address but other inaccuracies are more nuanced and harder to spot. For instance, people often find closed accounts listed as being open or the same account listed twice. You have the right to dispute these inaccuracies because they directly impact your credit score so it’s important to know about the most common type of errors on a report.
The Most Common Types of Credit Errors
- Credit Errors in Personal Information
Reporting agencies often make mistakes with personal information and even the most minor clerical inaccuracies can have a serious impact on your credit score. This might refer to a misspelled name or address or maybe the wrong contact number. Either way, inaccurate identity data is common on credit reports and needs to be reported and removed after your bankruptcy.
- Incorrect Accounts on the Report
Many people notice incorrect accounts listed on their credit report after bankruptcy. The truth is, identity theft is a problem and it can happen that loan accounts are opened without your consent. This fraud is always addressed when reported but unfortunately the initial onus is on the customer to spot it. Credit bureaus are also known to mix up information from time to time by adding accounts to your report or perhaps crucial data such as a social security number that belongs to another person.
- Mistakes with Account Reporting
Credit errors are also common in terms of the detail in account reporting. The scope is wide for this one because it refers to everything from inaccurate balances and payment dates to closed accounts and discharged debts that should not be on the report. Account reporting mistakes is an area in which a credit attorney will often find credit errors after your bankruptcy.
What to Do When You Discover a Credit Report Error
Credit errors affect one in five Americans and they are more than just a hassle. These errors seriously impact your eligibility for financial products and can interfere with a wide range of life events. seemingly minor errors can also cause untold damage to your credit score for many years and this is damage that can be avoided. For this reason, it’s extremely important to protect your financial future by spotting and removing all credit errors from your report.
But maybe you need some legal assistance with the above?
It’s always best to speak with a credit attorney who knows exactly where to look for these errors and have them removed in order to protect your credit score. Get in touch with one of our team at McCarthy Law to get started.