What are common credit report errors that you should look for on your credit report? When reviewing your credit report, check that it contains items about you. Be sure to look for information that is inaccurate or incomplete.
Some common errors in credit reports are:
Identity errors
- Errors made to your identity information (wrong name, phone number, address)
- Accounts belonging to another person with the same name or similar name as yours (this mixing of two consumer’s information in a single file is called mixed file)
- Incorrect accounts resulting from Identity theft
Incorrect reporting of account status
- Closed accounts reported as open
- You are reported as the owner of the account, when you are actually just an authorized user
- Accounts that are incorrectly reported as late or delinquent
- Incorrect date of last payment, date opened, or date of first delinquency
- Same debt listed more than once (possibly with different names)
Data management errors
- Reinsertion of incorrect information after it was corrected
- Accounts that appear multiple times with different creditors listed (especially in the case of delinquent accounts or accounts in collection)
Balance Errors
- Accounts with an incorrect current balance
- Accounts with an incorrect credit limit
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Teaching Suggestions
- Why is important to check your credit reports every year?
- Credit bureaus are required to follow reasonable procedures to ensure that your credit report is accurate, then why mistakes may occur?
- Ask students if they have ever been contacted a credit bureau to dispute the accuracy of its information. What was the outcome?
Discussion Questions
- When you notify the credit bureau that you dispute the accuracy of its information, what must the credit bureau do to rectify mistakes?
- What are your legal remedies if a consumer reporting agency fails to comply with the provisions of the Fair Credit Reporting Act?
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