Fix errors on your credit report
Virtually every American has a credit report. If you open a bank account, take out a loan, or apply for a credit card, then you have a credit report, a supposed summary of your financial health. You may assume that your credit report is accurate – after all, it’s merely a compilation of straightforward monetary actions – but there’s a strong chance that it’s not.
According to the Federal Trade Commission, 20% of Americans have at least one significant error on their credit report. Common errors include incorrect personal information, inaccurate account information, or entirely fraudulent accounts altogether. These types of errors can harm your ability to obtain credit or get the best terms possible. In other words, an error like this can limit your financial opportunities. This is particularly detrimental when you have a sudden or immediate need to obtain credit or make a purchase and no longer can, due to issues on your credit report that are no fault of your own.
Check your credit reports annually
Unfortunately, it’s in a situation like this, when a consumer tries to take out a mortgage or open up an account, that the credit reporting error is discovered. This is why it is important that you check out your reports before you need to make a big purchase.
You are entitled to one report for free from each of the credit bureaus per year (or, right now, per week until April 2021) if you go to annualcreditreport.com. When you submit your request, you’ll see that you can choose to view reports from one or all of the three major credit bureaus: Equifax, Experian, and TransUnion. Request to view all three reports, as each of them may have slight differences in what they report. Ultimately, it’s a combination of the three reports that impacts your ability to make future purchases.
When you receive your reports, look at them carefully. Call us if you spot a problem on any one of them. Once we know what appears on the report we can address the errors that are holding you back.
Compensation for Credit Report Errors
If you’ve already been denied for credit, you should contact either the potential lender or the credit bureau to obtain a copy of the report that the lender viewed when making its decision. Email or call us to help you navigate through your situation; we can help you correct misinformation. Furthermore, you may be entitled to compensation against either the credit bureaus or your creditors under the Fair Credit Reporting Act due to erroneous information appearing on your credit reports.
It’s also important to know the difference between a credit report and a credit score. Your credit report is a compilation of your credit history, including open accounts, accounts in collections, and/or public records. Your credit score is a number – a ranking – that communicates to a lender how “credit-worthy” you are. In other words, your credit score is like a financial grade: the higher your grade, the better terms a lender may offer to you. It is to your benefit to have a high credit score, and one way to ensure your score is accurate and favorable is to ensure that your credit reports are accurate.
Request your free credit reports today. Then, contact Peterson Legal with any questions or possible errors. With us by your side, you can be confident that you and your credit are treated fairly by the credit reporting bureaus.