Quick Answer
Common credit report errors include incorrect personal information, mixed credit files, inaccurate account or payment information, debt-related mistakes, duplicate accounts, identity theft related entries, and incorrect deacesed status reporting. These errors can appear on credit reports issued by Equifax, Experian, and TransUnion and may affect your credit score and financial opportunities.
What Are the Most Common Credit Report Errors?
Credit report errors can take many forms, including information that is inaccurate, misleading, incomplete, false, or unreportable. The most common types of credit report errors include:
- Personal information errors: Misspelled or incorrect names and addresses, incorrect middle names or initials and other identifying information, and incorrect Social Security numbers or dates of birth.
- Account information errors: Incorrect account status, opening and closing dates, balances, credit limits, owner and authorized user information, and collections status.
- Payment history errors: Incorrect reporting of late payments, missed payments, and delinquencies.
- Debt-related errors: Incorrect creditor information, debt ownership, balances, payoff status, or dates associated with the debt.
- Mixed file errors: Someone else’s information is mixed into your credit file.
- Duplicate reporting errors: The same account or debt appears multiple times.
- Deceased reporting errors: You’re falsely reported as deceased on a credit report or account.
- Identity theft-related errors: Fraudulent accounts, inquiries, or debts created through unauthorized use of your information and reported on in your credit file.
Why Do Credit Report Errors Happen?
Credit report errors often happen because of mistakes made by credit bureaus, lenders, debt collectors, and other companies that provide consumer financial data. Errors also result from these companies having inadequate procedures for identifying and correcting these mistakes.
Credit bureaus rely on automated systems and algorithms to collect, match, sort, process, and report enormous volumes of consumer data. While these systems are great for optimizing speed and scale, credit report errors can occur when data is mis-matched, obvious mistakes are missed, duplicate entries aren’t flagged, incorrect information is supplied by lenders or collection agencies, and databases aren’t properly updated.
What Is a Mixed File Credit Report Error?
A mixed file credit report error occurs when information from someone else is mistakenly included in your credit report, often because of similar names, addresses, or Social Security numbers, but sometimes due to clerical or data entry errors.
When a mixed credit file happens, the other person’s debts, late payments, or collections can appear on your report and negatively impact your credit score. It can also result in false deceased reporting if your data is confused with data from someone who has died.
Can Identity Theft Cause Credit Report Errors?
Yes. Identity theft is a common cause of credit report errors. Identity thieves may make purchases in your name, open credit cards and store accounts, apply for loans- including mortgages, auto loans, and student loans- or take on medical debt in your name.
These fraudulent accounts and transactions appear on your credit report as though they belong to you. Because identity thieves typically do not intend to repay the debts they create, your credit report can show an increased number of accounts, loans, and debts, along with late or missing payments, account defaults, charge-offs, and collection accounts.
Though identity theft-related information is caused by intentional fraud, it is considered inaccurate information on your credit report and can be disputed and removed with proper procedures and documentation.
Do Old or Incorrect Debts Appear on Credit Reports?
Yes. Old debts, paid debts, settled debts, debts discharged through bankruptcy, and inaccurately reported debts can appear on credit reports. If the information is accurately reported, it will stay on your credit report for a period of time specified by law. If the information is inaccurate or outdated (past the legal reporting period), then it should not be reported and is considered an error.
Assuming it’s accurate, most negative debt-related information stays on your credit report for up to 7 years, with some exceptions. Postive account information can stay on your credit report for up to 10 years or longer.
Outdated, inaccurate, misleading, incomplete, and duplicate debt information, or debt information belonging to someone else, can be disputed and removed with proper procedures and documentation.
How Do Credit Report Errors Affect Your Credit Score?
Credit report errors can lower your score by showing late payments, higher debt balances, collection accounts, or other negative information that should not appear on your report. Beacuse credit scores are calculated using the information contained in your credit report, inaccurate information can impact your score and your perceived creditworthiness.
The information in your credit report is treated as accurate, unless specific items are disputed and removed. So, even information that is false, misleading, incomplete, or inaccurate gets factored into your credit score as though it were correct. This inaccurate portrait of your credit history can create an unfair impression of your level of credit risk.
How Can You Check Your Credit Report for Errors?
You can check your credit report for errors by obtaining copies of your credit reports directly from each of the three major credit bureaus- Equifax, Experian, and TransUnion- or through annualcreditreport.com, where you can access all three reports at once. Annualcreditreport.com is the official website authorized by federal law and operated jointly by the credit bureaus. It offers free weekly access to your credit reports, though not your credit score.
When reviewing your credit reports, pay attention to personal information, account details, balances, payment history, and public records. Look for unfamiliar accounts, incorrect personal information, inaccurate balances, duplicate entries, incorrect payment histories, or information that appears incomplete or outdated. Any information that is misleading, false, inaccurate, missing, belongs to someone else, or is outdated may be a credit report error.
How Do You Fix Credit Report Errors?
You fix credit report errors by disputing them with the credit bureaus. The dispute process generally involves identifying the error, explaining why it’s inaccurate, and providing sufficient supporting documentation. You can dispute errors on your own or by working with a credit report lawyer. If a credit bureau ignores your dispute, conducts an inadequte investigation, incorrectly verfies inaccurate information as accurate, or fails to correct the error, the law gives you the option to pursue legal rememdies through a lawsuit, and the right to seek compensation for harm.
To dispute a credit report error:
- Review your credit report and identify all instances of inaccurate, misleading, false, incomplete, old, and unreportable information
- Gather documents that support your position, such as account statements, payment records, court documents, identity theft reports, or correspondence with creditors
- Draft a dispute letter and submit it, along with copies of your supporting documents and a copy of your credit report with the errors clearly marked. Submit the dispute through certified mail to the address provided on the credit bureau’s website and keep all records and proof of receipt.
- Track the dates and follow up on the results of your dispute. Check your credit reports for updates. Note that the credit bureaus typically have 30 days to investigate and respond.
When Should You Contact a Credit Report Lawyer?
You should consider contacting a credit report lawyer if:
- The credit bureaus fail to correct a clear, properly disputed error.
- Inaccurate information reappears after initially being removed.
- Your dispute is ignored or inadequately investigated.
- The error has caused you harm, such as being denied credit, employment, housing, insurance, or other opportunities, or being offered worse terms.
- You need guidance regarding your rights under the Fair Credit Reporting Act (FCRA) or feel more confident making a personalized legal plan before heading into the dispute process.
What Are Your Rights Under the Fair Credit Reporting Act (FCRA)?
Under the Fair Credit Reporting Act (FCRA), you have the right to:
- have an accurate credit report
- review your credit reports
- dispute inaccurate information
- have the disputed information investigated by the credit bureau
- get a response within 30 days of the credit bureaus receiving your dispute
- have the information corrected
- file a lawsuit if your dispute is ignored, improperly investigated, incorrectly “verified” as accurate, the errors continue to be reported, or you have suffered harm due to the credit report errors
- seek compensation for any relevant harm suffered
The law also places responsibilities on the companies that furnish information to the credit bureaus and they may be held accountable as well.
Can You Sue for Credit Report Errors?
Yes. You can sue for credit report errors. Consumers have legal rights when credit bureaus or companies that provide the data to the credit bureaus fail to comply with the Fair Credit Reporting Act (FCRA). Whether a lawsuit is appropriate in an individual case depends on the specific facts and circumstances involved.
Lawsuits can be appropriate when false information remains on a report after a proper dispute, required investigations are not conducted or are improperly conducted, or you’ve suffered harm caused by the errors on your credit report.
You can seek legal guidance regarding the specifics of your situation for a personalized answer.
Frequently Asked Questions
How long do credit report errors stay on your report?
Credit report errors may remain on a report until they are disputed and corrected or removed. If an error is not identified and disputed, it can remain indefinitely.
Is it free to dispute a credit report error?
Yes. It is free to dispute a credit report error. Though you may pay upfront costs for postage if sending the dispute through certified mail (recommended). Working with an attorney does not cost any money upfront or out of pocket because the credit bureaus pay your legal fees after a successful claim.
How long does it take to fix a credit report error?
It varies, depending on the facts of your situation. By law, the credit bureaus typically have to investigate and respond to a dispute within 30 days of receipt. If the dispute is ignored or a lawsuit has to be filed, it can take longer. However, credit reporting lawsuits are usually relatively quick by legal standards.
Can credit report errors affect getting a job or apartment?
Yes. Credit report errors can affect a job or apartment. Some employers and landlords may review credit information during the application process. Errors can negatively affect those decisions, resulting in denials, rejections, or worse terms.
What should you do if a dispute is denied?
Review the explanation provided, gather any additional supporting evidence, and discuss your case with a credit report lawyer.
Can the same error appear on multiple credit reports?
Yes. If inaccurate information is reported to more than one credit bureau, the same error may appear on multiple credit reports. Also, some errors get picked up and spread from one credit bureau to another, including being falsely reported as deceased.
Will fixing errors improve your credit score?
It may. If the corrected information removes negative items or incorrect account and payment data, your credit score could improve. However, results vary depending on the information involved, what else the credit report shows, and which proprietary formula is being used to determine the credit score.
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