Common Credit Report Errors and How You Can Fix Them
Summary
Learn about common credit report mistakes, how to check your credit report and steps you can take to dispute errors and protect your financial future.
In this article:
Your credit report plays a big role in your financial life. Lenders, landlords and even employers may refer to your credit history to decide whether to extend credit or approve an application.
When errors show up, those mistakes can make borrowing more expensive or even get in the way of new opportunities. The good news is that you can catch credit report errors by reviewing your report regularly and taking steps to correct them.
Keep reading to learn about some of the most common credit report mistakes and practical steps you can take to potentially fix them.
Common credit report errors to look out for
Mistakes on your credit report can make it harder to qualify for loans or credit cards. Below are some of the most common types of errors that show up, according to the Consumer Financial Protection Bureau (CFPB).1
Incorrect personal information
Your report typically lists basic information like your name, address, Social Security number and may include where you’ve worked. When details are off, like a misspelled name or wrong home address, your information could get mixed up with someone else’s. That mix-up can lead to accounts or debts being added to your credit report that don’t belong to you.
Accounts resulting from identity theft
Another issue to watch for is the appearance of accounts you never opened. Identity thieves may use stolen personal information to take out loans or credit cards in your name. Fraudulent accounts can appear on your credit report and damage your history if not corrected. Reviewing your report regularly can help you spot suspicious activity and get ahead of it before it does long-term harm to your credit score.
Account status errors
Pay close attention to how your accounts are labeled on your credit report. For example, on-time payments should not be marked as late. Account status errors can make you appear less dependable with credit than you are. Some other common account status errors include:
- Closed accounts still reported as open, or open accounts mistakenly reported as closed
- Debts listed more than once, sometimes under different names or debt collectors
- Accounts on which you’re an authorized user being reported as if you are the primary user
Data management errors
Credit reporting agencies gather account information from your creditors, and mistakes can happen along the way. You might see an account with an incorrect balance or credit limit, for example, which can change how your credit utilization ratio is calculated. Credit utilization ratio is the percentage of your available credit you’re using, and it makes up a significant part of your credit score. A lower percentage is generally better, and many lenders look for a credit utilization ratio at around 30% or less.2 A higher ratio can lower your credit score, even if the balances are inaccurate.
How to check your credit report for errors
You have the right to see what is in your credit report. Under the Fair Credit Reporting Act, each of the three major credit bureaus — Equifax, Experian and TransUnion — is required to give you a free copy of your report once every 12 months if you ask for one.3 You can also check your credit report with each of the three credit bureaus once a week for free.
Be careful when searching online for “free” credit reports, since many companies advertise this service but charge hidden fees. The only official site authorized by the federal government is AnnualCreditReport.com. You can request your reports online, call 1-877-322-8228 or send a request by mail. Step-by-step instructions and mailing details are available on the website.
How to dispute mistakes on your credit report
Fixing mistakes on your credit report takes a little patience, but it’s worth the effort if your dispute is approved. Here’s how to start the dispute process:
Dispute the error with the credit reporting company
If you spot an error on your credit report, you can dispute it with the relevant credit bureau. All three credit reporting companies offer the option to dispute credit report errors online, by phone or by mail.
If you choose to dispute the error by mail, you can write a letter explaining what the error is, include copies of any documents that support your claim, and ask the credit bureau to remove the error. You can also include a copy of your credit report with the error highlighted. Be sure to send your letter by certified mail and ask for a return receipt to keep for your records.
Dispute the error with the company that provided the information
Credit reporting companies collect your financial data from other businesses called furnishers, including banks, landlords or credit card companies. You can send your dispute in writing to the furnisher, using certified mail with the address listed on your credit report or the one the furnisher specifies for disputes.
Furnishers usually have 30 days to investigate and respond to the error you dispute.4 If the furnisher confirms the information is incorrect or if they can’t verify it, they must correct or remove it and notify all three credit bureaus to update your credit report.
If the furnisher determines that the information you reported is accurate, you can ask the credit reporting companies to add a statement to your credit report explaining why you disputed the information. The statement will be available to anyone who pulls your credit report in the future.5
Give your credit a fresh start
Finding mistakes on your credit report can feel frustrating, but it doesn’t have to hold you back from reaching your financial goals. By knowing what to look for, checking your credit reports regularly and disputing any errors you find, you can make sure your credit history reflects your real financial story. Taking these steps now helps you protect your credit score and keep more financial opportunities within reach.
Sources:
1 https://www.consumerfinance.gov/ask-cfpb/what-are-common-credit-report-errors-that-i-should-look-for-on-my-credit-report-en-313/
2 https://www.equifax.com/personal/education/debt-management/articles/-/learn/credit-utilization-ratio/
3 https://consumer.ftc.gov/free-credit-reports
4,5 https://www.consumerfinance.gov/ask-cfpb/how-do-i-dispute-an-error-on-my-credit-report-en-314/
**This article has been updated from a previous posting in January 2014 and November 2018. Matt Diehl contributed.
This article is for general education and informational purposes, without any express or implied warranty of any kind, including warranties of accuracy, completeness, or fitness for any purpose and is not intended to be and does not constitute financial, legal, tax, or any other advice. Parties (other than sponsored partners of OneMain Financial (OMF)) referenced in the article are not sponsors of, do not endorse, and are not otherwise affiliated with OMF.
