Wednesday 19th of December 2018

Credit Report Errors Can Be Costly!

When you need to get online quotes, whether for a mortgage, automobile loan, or even homeowner’s insurance, your credit score has some part in determining how much you will end up paying. Unfortunately, credit reports are not always error-free. Before you shop for your next loan or insurance quote, be sure to check your report for errors. You can get one free every year at AnnualCreditReport.com There are a few common errors that you should check for before you request your next quote.

Accounts Opened Through Identity Theft

When you check your history, you may, unfortunately, find out that someone else has opened an account using your name. This happens all too often, but it can be repaired. You don’t have to pay back loans that you did not take out yourself. Try to clear this up before you get online quotes, or you may find that your rates are higher than expected.

Family Members With Your Name

If other members of your family share your name, you might find that some of their credit information ends up on your report. This may not be a bad thing if your relative always makes their payments on time, but it can be devastating to your score if they are always making late payments or have overextended their credit. Whether your relative is responsible in paying their bills or not, you will need to get them off your report before you look to get online quotes.

Incorrect Report that You Didn’t Pay Your Debt

Companies make mistakes. When you check your report, you might find out that your lender accidentally reported to the reporting agency that you didn’t pay off a loan that on time. Because late and non-payments affect your score, you will want to get this error fixed before you get online quotes.

Easy Steps to Credit Repair

When you get online quotes, you want them to be as inexpensive as possible, and errors will cost you money. Take these steps in order to get the errors removed from your report.

  • Write a letter to the credit reporting agencies with details on the errors in your report. Make a photocopy of any documents proving your case, and include them in your letter. It may help to include a copy of your full report with the errors circled. The reporting agency will verify the validity of your claim, and make the appropriate adjustments. You can find a sample dispute letter at the Federal Trade Commission’s web site.
  • If the agency verifies the error, you will need to write a letter to the creditor, or whoever is providing the incorrect information. Inform them that they are reporting incorrect information, and provide them with copies of the documentation that proves your case. Let them know that they need to be able to provide proof that the information that they are reporting is correct (which they won’t be able to do), or they will have to remove that item from your credit report.

There is one thing to always keep in mind when you are writing an agency or a creditor. Always send your correspondence Certified, Return Receipt Requested. Agencies have 30 days to respond to your requests. By sending your letter certified, with a return receipt requested, you will have proof of when they received your letter, and you will know the deadline that they have to correct the error on your report.