Your Credit Report Probably Has Errors

An interesting article published recently by a watchdog group shows that nearly half of all credit reports contain errors. This could have a severe impact not only on your credit score but it could cost you money. Watching your credit is an important habit you should start to create, especially with a recent data breach that has exposed the personal information of millions of individuals.

Survey by Consumer Reports

Watchdog group Consumer Reports had 4,300 volunteers check their credit reports for accuracy through three major credit reporting bureaus: Equifax, Experian, and TransUnion. The results were not surprising.

Twenty-five percent of consumers were unable to access their credit reports. That has happened to me endless times. Sometimes, they ask security questions that, in all honesty, it’s impossible to remember the information.

For example, a security question could be what phone number you have used. Well, I’ve had my phone number for probably fifteen years, so I’m not likely to remember a phone number before that.

Earlier this week, my wife was filing an insurance claim for my cell phone. She was asked if I had ever lived at a specific address. Yes, the same house that was foreclosed on in 2008!

Forty-four percent of those surveyed found errors. That has also happened to me endless times. Twenty-seven percent of those errors were potentially damaging to the consumer’s credit per the study. Here’s where I say that has happened to me as well endless times.

What Happened to My Credit Report

A few years back, I was at the Chevy dealer and was interested in getting a Corvette. While I got my dream car, my credit report showed five foreclosures in Monroe County, which is in the Florida Keys. I’ve never owned property in Monroe County.

Yet, when I went to buy a Honda Goldwing a few years later, the finance department said I had more than thirty late payments with that same car. Not true!

I figured they were trying to scam me to increase the interest rate, but the change and the effect on my monthly payments were minimal, so I didn’t worry about it. However, I did dispute what was listed on my credit report.

There have also been numerous lawsuits that were not related to me, and apparently, that individual was served at addresses I never lived at. But when you have a common name, this could be an issue. So keep that in mind.

Also, confirm that your identity has not been stolen if your credit report lists an address you are not associated with.

I even had issues with the Florida Bar. I had taken the bar exam in June of 1999. Approximately two months later, I found out I passed the bar exam but was not approved for my license because of “moral issues.” The state bar had stated there was a credit card debt I defaulted on and was now in collections. Also, that’s not true!

When a credit card dispute is filed, the creditor has thirty days to respond to the error. The Florida Bar Board of Examiners would meet every thirty days to see who else would be granted their bar license.

Of course, by the time the creditor replied, the board had already met and would not convene for another thirty days. In the meantime, the creditor would once again report that I had defaulted.

This vicious cycle continued for three months until I finally told the bar that if they wanted me to pay for a debt that was not mine, I’d be more than happy to. The debt was $2,000, and I was losing more than that in income every month. Finally, I was granted my license on October 28, 1999.

How Your Credit Report Full of Errors Hurts You

Credit reports are part of life; there’s no way around that. We have gone from creditors relying on credit reports to now employers. I will never be convinced there is a connection between bad credit and a moral issue that makes you a bad employee. I always like to reverse arguments.

If the position for an employer is someone with bad credit makes for a bad employee, then that means those with good credit are good employees. Have you ever needed help when shopping and that person was not helpful? So, they had good credit?

I had bad credit for years. So, I lacked morals somehow? So, those with good credit stand on a higher moral ground? It’s absurd. I’ll take this even further with government employees.

Boost Your Credit Score with Personal Loans

I’ve had to file bankruptcy for government employees who could not get a promotion or security clearance because they had a substantial amount of debt. At the same time, I’ve had clients who could not file for bankruptcy because it would prevent them from going to a higher pay grade or getting security clearance. Yes, it is a topsy-turvy world.

Some clients told me the theory was that if you are heavily indebted, that increases the likelihood of getting payoffs. Hmm… So, someone not in debt would avoid payoffs because of their high moral standard? What if they have no credit? Are they more or less moral?

It’s all nonsense, and I’m sure there aren’t statistics to back up these absurd assumptions. Just play the game to make sure you have good credit.

Living in Jacksonville, Florida, where there are multiple military bases, I always tell clients who work for the government or serve in the military to confirm with their superiors if they should file for bankruptcy. Otherwise, it could affect promotions down the road for them.

Besides employment issues, errors in credit reports could also result in getting denied car loans, credit cards, or even buying a house. Could the error be fixed? Sure, but that takes time and could result in you not getting your dream home or car sold at a great price.

Getting Your Credit Report

Believe it or not, there was a time when consumers didn’t have access to their credit reports. At many dealerships, I was told, “We can’t show it to you by law.” No problem, I’m out of here.

Seriously, it’s a trust issue. I understand the law, but there’s no reason why I would need to trust a stranger who undoubtedly will increase my interest rate.

With time, credit reports were available for a fee. Fast forward, you can get your free credit report every twelve months.

Other services, such as with your bank, could give you weekly access to your credit report. If so, take advantage of it if there are errors.

What to Do if You Find Errors

You can report errors at any of the three credit bureau websites. Consider contacting that company directly if the error is on a specific account.

With AnnualCreditReport.com, you can file a dispute through their website.

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• Bankruptcy
• Your Wallet

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Please note the information on this site does not constitute legal advice and should be considered for informational purposes only.