Credit card errors are relatively common in New York. According to a Federal Trade Commission (FTC) study, five percent of consumers have mistakes on at least one of their major credit reports. While credit cards are an excellent way to build credit, errors on your credit can lower your credit score and lead to financial loss.
That is why you should regularly review your credit card statements to identify and report errors promptly. Here are the three most common credit reporting mistakes to look into:
- Inaccurate Personal Information: Inaccurate personal information refers to any incorrect details that pertain to your identity. This information includes your name, date of birth, employment history, address, Social Security Number, and more. With the many consumers that credit reporting agencies deal with, personal information for consumers with similar details can sometimes be confusing. Sometimes, these inaccuracies can occur for various reasons, such as identity theft, clerical errors, or reporting outdated data. Credit card mistakes can affect your creditworthiness and financial opportunities if not addressed promptly. Lenders, employers, and other institutions may rely on your credit report to make decisions about extending credit, offering employment, and providing other services. If your personal information is incorrect, it could cause challenges in accessing credit with favorable terms and conditions.
- Incorrect Account Information: Another common error on your credit report is inaccurate information about your account. This often occurs when creditors provide inappropriate information to the credit reporting bureaus or when the agencies inaccurately enter the details they have been given. You should review your accounts regularly to check if they have been reported correctly. Examples of incorrect account information to pay attention to include late payments, unpaid balances, and inaccurate credit limits.
- Fraudulent Accounts: Fraudulent accounts error can significantly affect your credit rating. This error entails fraud or identity theft, which occurs when someone uses your confidential information to open and operate accounts. Fraudulent accounts are a serious credit reporting error and should be reported immediately for correction.
How To Fix a Credit Reporting Error
If you have discovered a serious mistake on your credit report, you should take steps to rectify it promptly. Contact the credit reporting agency to review the account. The Fair Credit Reporting Act (FCRA) allows you to challenge and request an investigation for any error you find on your credit report.
You can also work with a credit attorney to review the reports and gather supporting documentation that can prove the mistakes, such as payment records and account statements.
Contact Mizrahi Kroub Today To Get Started
Credit reporting mistakes can lower your credit score and hinder your financial abilities. Fixing these errors is the best way to ensure an accurate representation of your creditworthiness and facilitate overall financial well-being.
If you need help fixing a credit reporting mistake, our attorneys at Mizrahi Kroub LLP can help you fight for justice. Call us at (212) 595-6200 for a free consultation with a New York credit lawyer to get started.
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