According to the Federal Trade Commission (FTC), about 5% of consumers have errors on their credit reports and 26% of people involved in the study had an error that might potentially impact their ability to get a better interest rate. This can be easily rectified with a little more proactive behavior, such as checking your credit report once a year. In fact, the Fair Credit Reporting Act requires credit reporting companies, such as Annual Credit Report, to provide one free copy of a person’s credit report every year. Keep in mind that there are many companies that claim to offer this service for free, so always read the fine print and do not get fooled by companies that charge a fee.
Here are some helpful tips on what you should look out for when examining your credit report:
- Incorrect information: First of all, always make sure that your name is correctly spelled and that the correct middle initial is used, if applicable. If your name is incorrect, it is possible that there might be information on your report that is from another person with a name that is similar to yours. You should also make sure that your address, employment information, and Social Security number is correct as well.
- Accounts are listed as closed by lender: For credit accounts that you closed, it is important to see that they are listed as closed by lender rather than closed by grantor. If it is not appropriately listed, it can negatively impact your credit score.
- Bad debts that are older than 7 years: Credit reporting companies are supposed to remove bad debts from your credit report after 7 years. Additionally, if you filed for bankruptcy, your discharged debts should also be removed from your credit report, though the bankruptcy will remain.
- Duplicate accounts: It is not uncommon for accounts to be reported more than once, but this error on a credit report can make it look like you have more open credit and, consequently, higher debt.
- Debts from your ex-spouse: When you get a divorce, it is critical to have your name removed from any joint accounts to avoid being liable for any future debts. Make sure you check your credit report after you are divorced to ensure no new debts from your ex-spouse are added to your record.
If you find any of the aforementioned mistakes on your credit report, you do not have to live with them. Seek legal help from a skilled credit reporting attorney who can assist you in navigating the process of having any of these errors rectified, so that your credit report accurately reflects your financial health.
Credit Reporting Attorneys in Northbrook
If your credit report has errors and you are unsure how to go about resolving them, reach out to the Northbrook credit reporting attorneys at Bach Law Offices. Our skilled legal team is backed by over 35 years of combined legal experience, which we will use to your benefit. You do not have to accept a harmful error on your credit report. Work with a team you can put your trust in.
Get started and call Bach Law Offices today at (847) 448-0025 to schedule your free initial in-person consultation!