Credit reports are a great way to establish your creditworthiness in today’s world. When you take out an auto loan, the bank first looks at your credit report before giving you the money. When you apply for a new job, they look into it as well. However, when there is a mistake on your credit report, it can cause some serious problems. This article will teach you how to fix mistakes on your credit report so that it doesn’t hurt you when applying for jobs or loans in the future.
What are credit reports?
Credit reports are documents that list all of your information about your credit history. They include your payment history, length of credit, and information on whether you are responsible with your financial obligations. When you apply for a loan or job, they will look at the information on the credit report to see if it is accurate.
Why do credit reports have mistakes?
One of the main reasons you might have a mistake on your credit report is because someone else is using your account. Other people might be using your account to open new accounts, get loans, or purchase items and pay them off with your credit card. Sometimes these mistakes are innocent enough, but other times they could be more intentional. For example, an ex-spouse could have made a mistake and given inaccurate information so that they can get their hands on some of your money.
How to fix mistakes on your credit report
There are two main ways to fix mistakes on your credit report. The first is using a credit repair service. A credit repair service will dispute the misinformation and then provide you with a free copy of your credit report. This is a great option for those who don’t have time to deal with the hassle of disputing each error themselves.
The second option is contacting each of the three major credit bureaus in writing, explaining that you believe an error was made and then requesting an investigation be made into your case. This method can be more time-consuming but it gives you more control over your credit report.
Either way, there’s no need to worry if errors keep popping up on your credit report; there’s always something you can do about it!
What’s next after you fix the errors?
After getting the errors on your credit report fixed, you’ll want to obtain a fresh copy of your credit report to make sure that they are removed. You can obtain one for free at AnnualCreditReport.com, which you should do after you’ve filled out the rest of the information that’s necessary for them to fix it.
Remember, once you fix the errors on your credit report, you should go back and make sure that they’ve been fixed on your bank statement, too. If they are still there, then it’s a good idea to contact the reporting agency directly and ask them to correct them again.
Conclusion
Most of the time credit reports have errors that need to be fixed. It’s important to check your credit report for mistakes because these mistakes could be hurting your credit score. By checking your credit report and correcting the mistakes, you are fixing the errors and ensuring your credit report is accurate, which will in turn make it easier to apply for loans and obtain employment.
This infographic was created by Stein Saks, a TCPA law firm
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