Tips And Advice On Checking Accuracy On Credit Report

This BLOG On Tips And Advice On Checking Accuracy On Credit Report Was UPDATED On July 6, 2017

Consumers have no choice on having their credit report looked at and reviewed when they apply for credit. Credit Reports often contain errors so always check on Accuracy On Credit Report.

  • Hard credit inquiries is pulled by creditors when applying for credit, including home loans.  
  • When the creditor pulls credit report, they will review credit scores and credit payment history.
  • Creditors will evaluate risk level by credit scores and credit history. 
  • The higher consumer credit score is the lower risk level.  
  • The creditor might not just evaluate credit score but some inspect overall credit report and examine credit history as well as previous derogatory and late payments. 
  • Older bad credit items do not have too much impact on credit scores but do not look good on the overall credit report.  
  • By law, consumers have a right to a free annual credit report.  
  • Consumers can order free annual credit report by visiting www.annualcreditreport.com .

Credit Bureaus And Accuracy On Credit Report

The three major credit reporting agencies are the following:

  • Equifax
  • Experian
  • TransUnion

Each credit bureau is required to provide consumers with a free annual credit report.

  • Every time consumers apply for credit there will be a hard credit inquiry registered.
  • Hard credit inquiries are not viewed favorably by creditors and lenders.
  • Multiple hard inquiries can negatively impact credit scores.

What Is On Credit Report?

Each time a credit report is pulled, the following information is stated:

  • Date that the credit was opened
  • Account number
  • Contact information of creditor and/or lender
  • Credit Balance
  • Credit limit
  • Amount of credit used
  • Monthly payments
  • Number of months on time
  • Number of months late

Credit Report And Credit Score

Credit score is calculated using the information contained in the report.

  • That is why it is important that the information it contains is accurate and consumers should check accuracy on credit report.
  • Mistakes sometimes occur, so consumers should check it over at least every year- with each of the credit bureaus named above.
  • If consumers spot anything that they disagree with they can dispute to be removed or amended.
  • However, consumers must have documentation to back up claim.
  • For example, credit report might state that consumer is associated with somebody else living at the same address, such a close relative. 
  • Perhaps son got into problems with his credit card, but has since left home. 
  • Consumers can request that the adverse credit records relating to him be removed from your report.
  • If anybody has defaulted from consumer address, this could affect their own ability to get further credit.
  • It is important that consumers are aware of every record held in file.

Harmful Credit Records

The following factors can be particularly harmful to you, and can severely affect ability to get loans, credits cards or mortgages:

  • Late payments: coded to show how many times been late with monthly payments, and how late each was
  • Credit default: credit that has been turned over for collection
  • Court judgments for bad debts
  • Bankruptcy
  • Excessive credit searches or inquiries: these indicate that consumers have been applying for too much credit
  • Credit refusals – where lenders have refused consumer credit applications
  • Overextended credit, where consumer have taken on more loans than they are able to repay
  • Garnishments from paychecks – where deductions have been made from paycheck at source to cover unpaid loans
  • Credit issues connected with address – family or others living at the same address.

Each one of these will affect ability to be offered credit in the future.  When consumers apply for any form of credit, the lender will first check credit report.  They will be particularly seeking out these red flags.

Credit Scores

They might simply check credit score, but might also check both, particularly if FICO score is less than optimum.

  • This is a score between 400 and 900, which should ideally be at or above 680.
  • If it is above 620 you may still be offered a mortgage, but at or below this will likely prompt a potential lender to scrutinize credit report.

Amending Inaccurate Records

That’s why it is important that the records held by the credit reference bureaus are accurate.

  • If consumer disagree with any particular record, they should contact the bureau who will likely send a form to complete.
  • Once consumer have submitted the form, the bureau has 30 days in which to investigate the matter.
  • Consumers who have provided irrefutable evidence, or if the original creditor/lender can no longer offer evidence verifying the record, then the bureaus will correct or delete it.
  • It is well worth making the attempt if the record is inaccurate.
  • Credit report is very important document, and contains the same records that determine credit score (FICO score.)
  • It is important to understand the information that it contains, and check it for accuracy.
  • Adverse records might not prevent getting a loan, but interest rate will be higher than average and the amount that can be borrowed might be reduced.
  • Make sure it is accurate.

The Credit Bureau numbers are:

  • Equifax (800) 685-1111
  • Experian (800) 311-4769
  • Trans Union Corporation (800) 888-4213

Related> Credit Scores and Credit Report

Related> What is a Credit Supplement

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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