Have you checked your credit report recently and been confronted by some unwelcome findings? Perhaps you are always able to pay on time, so feel that there is no need to double-check anything?
In either case, checking your credit report can be extremely beneficial. Credit reports do not always paint an accurate picture. It is vital that you identify any mistakes and have them corrected swiftly. Errors in your credit report could undo your hard work of staying on top of your finances or worsen any debt problems you may already be facing. Outlined below are some of the most common mistakes uncovered in credit reports.
Debts that have not been cleared
After a certain period, usually seven years, bad debts should be cleared from your credit records. At the same time, while a previous bankruptcy will show in your credit report, the specific debts discharged by the bankruptcy should no longer appear. It is not uncommon for credit bureaus to continue to show factors that should no longer be present in your report.
Inaccuracies with personal information
For your credit report to give an accurate account, your personal information must be true to who you are. Even the most simple error, such as a slight misspelling of your name, could mean that you are being associated with the debt of somebody else. Your employment details, social security status and other means of identification must also be completely accurate.
Changes in your relationship status
Couples tend to share a number of financial obligations. If you have recently divorced, this has probably all changed. People are often shocked to discover that joint accounts still appear on their credit report. To avoid this, be sure to update your information accordingly and remove your name from previously joint accounts.
To gain a clear picture of your financial situation, your credit report needs to be accurate. If you are facing financial difficulties, remember that you have a host of legal rights at your disposal.