An error on your credit report can mean the difference between being approved or denied for a loan. Ensuring your credit report is accurate means lenders will offer you the best interest rate that your credit history merits. It’s up to you to confirm that your credit reports contain your correct history.
Minor errors on your credit report, such as name misspellings and wrong addresses, can complicate the process when you apply for a new credit card or loan. Consumers with serious inaccuracies on their credit reports, like false delinquencies or accounts in bad standing that don’t belong to you, may be denied credit, home loans, apartment rentals, auto insurance, or even medical coverage.
If a consumer’s credit report incorrectly lists the same loan or other account twice, it could appear that the consumer has become delinquent on one loan or has “too much” debt for his income and could be denied future credit as a result.
Accounts left “open” by the credit reporting agencies could make it appear that a consumer is over-extended on credit, thereby causing denial of future credit. If a consumer is falsely listed as having an additional $10,000 line of credit, for example, that may diminish his or her capacity to obtain a new loan.
If there is an account that you don’t recognize on your credit report, it’s possible that someone opened it in your name without your authorization. Another sign of identity theft might also be inquiries listed on your report from companies you do not recognize. This could mean someone is approaching lenders to try and apply for credit in your name, and those lenders are checking your credit before extending the loan. FreeScoreOnline.com alerts you to any new inquiries on your reports. You should review each alert to make sure you recognize the name of each company checking your credit.
If you suspect identity theft, the first thing you should do is call the institution that granted the unauthorized account or performed the inquiry. Explain that you did not open the account or authorize the inquiry, and you want it removed from your credit report.
Next, you’ll need to notify the credit reporting agencies and place a fraud alert on your report. You may also need to file a police report. Log every action you take when trying to recover your stolen identity.
Ultimately, serious errors in your reports mean you may pay more for loans (that is, if you qualify for them in the first place). Don’t pay more in interest than you need to because you were falsely placed in the sub-prime, higher cost lending pool. Make sure you are putting your best foot forward to lenders by disputing and resolving inaccurate information on your credit reports.