Credit Repair Step: How to Identify Mistakes on Your Report

Your credit report contains all your financial history – and we mean all of it. Since there is so much data involved, your report may contains errors. In fact, a recent study found that up to 20% of all reports do contain mistakes.

That being the case, your first order of business is to review your report very carefully, either with an IFS credit professional or on your own, and identify those reporting blunders.

Our recommendation is to actually print out your report on paper. That will make it much easier for you to quickly put your finger on the information you’ll need when you start cleaning up all the errors you are about to find. Here’s what to look for:

  • Is your personal data accurate? Is your name spelled correctly? Is your date of birth right? Did you actually live in the places the report lists as your current and prior residences?
  • Are all the accounts listed actually yours? Do credit cards show up on your report that really belong to someone else? Did someone take a mortgage or loan out under your name fraudulently?
  • Is the listed activity accurate? For example, you might see a late payment listed on an account in error. Look carefully for those mistakes friend.  If you find (and correct) these errors, it’s an easy way to restore credit scores.
  • Are the account details correct? Are the credit limits right? Is the type of credit listed accurate?
  • Is any information missing? For example, sometimes accounts you closed long ago are listed as open. That’s not something to let stand.
  • Are the listed items supposed to be listed? The law states that most negative items have to come off your report after seven years. If your report contains stale data, demand that it be removed.

TIP: Information about a past bankruptcy stays on your credit report for 10 years. Unpaid judgments can be reported for 7 years or until the statute of limitations is over (whichever is longer). Also, if you have a criminal conviction that stays in your credit file and it will never come off your report. The same holds true if you applied for life insurance or credit in excess of $150,000. That’s part of your permanent credit report.

  • Is the information complete? Under the Fair Credit Reporting Act negatives must be accurate and verifiable of course. But they also must be complete.In other words, even if an item is technically correct it must be removed if there are special circumstances that require the bureau to remove that problem data.For example, let’s say you didn’t pay a bill because you live alone and were in the hospital for 2 months. Did you pay the bill? No. But was there a good reason for the lapse? Absolutely.This is where you have to be relentless, stand your ground and keep fighting.  And even if you do work with a company that does credit restoration services, it’s still up to you to make sure they take the fight to the credit agency.

This is just a small smattering of the types of errors you might find on your credit report but you get the idea. Go through each of the three credit reports and highlight all the errors you find. Once you do that an IFS credit professional is ready to take the next step in repairing your credit with you!.

Leave a Reply

how can we help you?

Contact us at the IFS office nearest to you or submit a business inquiry online.

Looking for a First-Class Business Plan Consultant?

The IFS website uses cookies and asks your personal data to enhance your browsing experience.