2 Common Credit Reporting Errors

It is estimated that around 70% of consumers will have an error on their credit report at some time or another. Whether or not that error is picked up and corrected is ultimately up to the consumer. Because most errors result from simple technical slipups or data entry issues, there are many common issues which are picked up on a regular basis.

After a lot of hard work (going through many people's credit reports) we decided on two errors which popped up most commonly. Take a look at these below.

Error One: Incorrect Payment Details

One of the major factors in deciding on your credit score is of course the payment details which you currently have in place on your loans, debt facilities, and so on. Credit reporting needs to be accurate in this regard because of the importance that this factor has when determining your overall credit score.

Often, incorrect payment details come in the form of the following:

• Incorrect payment dates - i.e. loans starting on the wrong date and ending sooner or later than they should
• Incorrect payment amounts - which often results in the timing calculations being off also
• Incorrect interest rates or finer lending details

These errors usually stem from data input processes, and they are relatively easy to fix. In order to correct one of these errors, you simply need to get in touch with the credit reporting agency - and let them know that an error has occurred on your credit report.

Error Two: Loans which are not yours!

The second error can stem from identity theft, fraud, or genuine human error. The second most common error is of course the inclusion of loans on your credit report which do not belong to you.

Credit reporting standards dictate that you have the right to require the credit reporting agency to launch an investigation into an entry such as this. Because of the huge implications that such an error can have to your financial future, this investigation should be completed within 20 to 30 working days.

Many credit reporting companies have departments and sections dedicated to solving these types of issues - because of their seriousness. Therefore, if you notice one of these errors on your credit report, it is best to get in touch directly with the department which is suited to handle the problem. Calling the generic hotline for the relevant agency should allow you to be redirected to the person you need to speak to.