If you’re not aware of what a credit report is, it’s essentially a snapshot of your complete credit history. That includes all the loans in your name, all your credit cards, the complete details of your payment history, and perhaps most importantly, your credit score.
Your ability to secure a loan is largely dependent on how good your credit report is. The more the number of red flags on your report, the more difficult it will be for you to find a lender who’ll give you a loan.
What if those red flags on your report are a mistake? According to a Federal Trade Commission report, one in five Americans have a mistake in their credit report. Therefore, it’s important to check your credit report on a regular basis. You don’t want your credit score to take a tumble because of a mistake that wasn’t even yours.
Here are some common credit report errors that you should look out for.
Incorrect Personal Information
When you get your hands on your monthly credit report, the first thing you should check is the middle initial of the name and the listed address. If they’re wrong on the report, there’s a chance that the credit bureau has sent you the report of someone whose name is similar to yours.
There are Accounts That Don’t Belong to You
If there are credit cards or loans listed under an account that you don’t recall opening, there’s a chance your identity has been stolen. Unfortunately, identity theft has become quite prevalent in the United States. In fact, 20% victims of identity theft have even experienced it multiple times.
Closed Accounts Listed as Open
Inspect your credit score carefully to ensure that no old, closed accounts are listed as open. If there are any old debts that you’ve already settled listed on your credit report, it can increase your credit utilization ratio and negatively impact your credit score. Other things that can increase your credit utilization ratio include duplicate accounts.
Inaccuracies in Payment History
If you’ve been on time with all your payments, inspect your reports closely to ensure there aren’t any missed or late payments listed on it. Late or missed payments can have a significant impact on your credit score.
If you want to schedule a free consultation to avail our credit repair services, then call at 1-844-620-8796 or visit our website for more information. Our credit repair specialists at Masters Credit Consultants will be able to guide you best according to your financial plan.