Credit report errors.

A large number of credit reports contain errors. Even if you do not have any issues in obtaining a loan or credit, you may be receiving higher interest rates due to errors that you are not aware of on your credit report. Fortunately, you can repair your credit and earn a better credit report score. Credit reporting agencies (such as Equifax, TransUnion, and Experian) and the businesses reporting to these agencies have the legal responsibility of providing accurate credit history information to lenders, employers, and other similar entities.

If there is an error on your credit report, the Fair Credit Reporting Act allows you to file a lawsuit against the business or credit reporting agency who reported the erroneous listing and collect damages. If the error is a willful error (wrongfully reported in which they refuse to remove or correct despite your requests asking them to correct it), you can be awarded damages (money) and attorney’s fees from the court. If it is a negligent error (a mistake without giving them the opportunity to correct it), you can be awarded damages but you would have to prove exactly how you suffered a loss as a result of their credit reporting error.

The typical errors found on credit reports can include:

• Duplicate Listings – A single debt is listed two or more times on your credit report, making it appear as if you owe more than you actually do.
• Incorrect Reports – Your report states that you are behind on a debt when it is current, paid off or you only owe a smaller amount.
• Old Listings – A debt is only allowed to be listed for 7 years (with exceptions like 10 years for bankruptcies or judgments…), but certain companies may try to keep it on longer so you are pressured to pay off the debt
• Complete Errors – Another person’s credit information can be included on your report which typically occurs where two individuals have similar Social Security numbers.
• Impermissible Access – When you apply for credit, your credit report is often reviewed, which can have an impact on your overall credit score. If someone reviews your credit report without your authorization, it can appear as if you’ve applied for credit more often than you actually have, which can be detrimental to your score.