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The Most Common Credit Report Errors

By: Tymon Hytem

There are normally two types of blunders on credit reports: outright inaccurate information and errors that are a reflection of the carelessness of either the credit reporting bureaus or creditors themselves. Credit report errors themselves come in a wide variety of forms and may be related to “inaccuracies or omissions”. Omissions are also considered to be errors such as the existence of a delinquency that was already remedied, or an action of a collection still reported overdue when it has been paid in full.
Inaccuracies on a credit report can be removed or updated from an individual credit report rather quickly but diligence and persistence is required.  The Fair Credit Reporting Act declares credit bureaus must investigate an individual’s claim within 30 days. Once an error is noted, the mistake must be rectified and the other credit bureaus must be notified of the correction as well. Many individuals choose to use a credit repair service to handle these credit repair issues because the process can be time-consuming and somewhat frustrating.  Others prefer to handle it on their own because they have the necessary free time to adequately follow up on the corrections and keep a detailed paper trail to insure everything is fixed.
Surprisingly, about 25% of all credit reports have major errors. These errors can result in an individual being denied an insurance policy, a credit card, a home mortgage or even employment.  If these errors are not detected until an application is made for a loan, credit or a job, the individual may not have the ability to receive a corrected credit report in a timely manner and the situation has the potential to be devastating.
Some of the most common credit report errors are noted below:
·         Inaccurate Entries - It is not unusual for merchants and banks to submit information that is inaccurate to the credit bureaus. A certified letter to the credit report agencies (three in all) can fix most of the inaccuracies with all the facts (usually written proof) of any incorrect debt information. The credit reporting agencies can then notify the creditor of the dispute, and ensure verification of the inaccurate entry.
·         Bankruptcy Discharges - With the receipt of a bankruptcy discharge, the credit report should reflect all of the accounts that have been included in the bankruptcy.  Moreover, the balances on these accounts should reflect a zero. These accounts are often not accurately updated with the information subsequent to a bankruptcy discharge being granted.
·         Identity Mix-Ups - At times the credit file of one individual may be linked with another individual. This normally results in an unfair credit history that is obviously adverse for the individual who has the stronger credit score/report.
·         Obsolete and Outdated Information - A bankruptcy is to appear for a maximum of 10 years on a credit report.  Debts are to remain on the credit report for a maximum of 7 years per the federal “statute of limitations”.  However, it is common for debt collectors and debt purchasing firms to submit a “phony” or inaccurate charge off date so that the debt is incorrectly extended out on the credit report beyond the “7 year limitation”. Remember that the clock on the “7 year statute of limitations” starts ticking on the date the account is charged off by the original creditor.    
As Americans, our credit score is more important than ever to our financial futures. Many individuals and families encounter periods where mounting debt problems and the inability to “stay on track” with timely monthly payments will harm or reduce a credit score. Credit cards are the most challenging unsecured debt to manage when there is an illness, or a job loss, or an extenuating circumstance that creates financial hardship, because those payments do not provide critical basic needs (shelter, food).  Many consumers will turn to debt settlement services or debt consolidation services to resolve their problems. Yet this decision typically occurs only after a period of financial hardship when the credit history has already been negatively impacted. So it becomes advisable to monitor your credit report on a regular basis, and insure that you have not been a victim of the most common credit report errors discussed here.  Keep in mind that you can perform your own credit repair, but the process will require time, persistence and attention to detail. There are credit repair services with solid reputations that can also handle your credit restoration process.

Article Source: http://www.gcyarticles.com

Liv Worthington has worked in the credit and debt management field for many years. She takes pride in helping all of her clients find the right www.unitedcredithelp.com "> Credit Repair Service. If you are in need of credit repair or credit card debt assistance, then it is important to get on the right path towards a strong financial future with a good www.christian-debt-settlement-services.com "> debt settlement services by finding the right credit or debt advisor to aid you in this process.

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