Credit reports are not always accurate. It may be surprising to discover that even with today’s technology people still make mistakes and ultimately it is the people that fill in credit information. That is one of the reasons that it is important for credit histories to be reviewed on a regular basis. It can be particularly valuable to review a credit report before applying for a loan so that any errors can be cleared up ahead of time.
It’s not me
One of the most common errors that can end up on a credit listing is one that is the right name but the wrong person. The more common the name then the more likely this is going to occur.
I paid that off
It is important to keep records of all transactions so that if a dispute arises then you have a paper trail to follow. This is another reason to make actual check payments instead of making online payments. Having documentation for payments will help you remove any reports about accounts that you have paid in full.
There will be times when the i’s don’t get dotted or t’s don’t get crossed and an account that you paid off in full shows up as delinquent on your credit history. Keeping detailed records of payments, balances, and marking the last payment as “paid in full” will help build a case against the wrong report.
I didn’t do that
This new age of technology is good for a number of things that benefit every day life, but it has also been good for thieves. Bad guys steal information and open accounts in names other than their own. Then the unwilling consumer ends up with a bad credit mark because the thief leaves the bill unpaid. This can sometimes be the hardest credit report to remove from a credit history because the consumer has to prove he didn’t incur the debt.
It was my spouse
You are not responsible for all the debts that your spouse creates. Keep accurate records of the debts you incur together so that if something shows up on your credit then you will be aware of which are joint debts and what should have been filed only against your spouse. Remember that if you do create joint debt you will be fully responsible if the spouse does not pay that debt.
That wasn’t the agreement
There are times when a negative credit report occurs because the two parties involved – the lender and the borrower – never had a full understanding of how repayment was to occur. The borrower is fulfilling all that he agreed to do and yet the lender reports negatively because it feels that the borrower is breaching the agreement. Sometimes these situations can be avoided by reading and then re-reading the agreement before it is signed.
The agreement changed
Lenders sometimes sell loans to other lenders and in the process any changes in the original agreement can become lost. Keep copies of all correspondence with your lender – particularly all that talks about changes in the original terms. Follow up all telephone communications with your written understanding of the new agreement. The more paperwork you have on your side then the easier it will be to combat any errors.
Credit reports are not perfect. Some experts believe that at least one in four consumers has a negative mark on the credit history that does not belong. These marks come from mistaken identities, stolen identities, human error, and so much more. Because the system is not perfect it is all that more important that credit histories be monitored on a regular basis.
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