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Replicating Errors in Credit Reports

By Andy Snyder
Published: Monday, December 14th, 2009

Credit report contains lots of information about the consumer. All the details of a person’s account, personal information, credit histories and the like can be revealed in credit reports. Studies, however, found out that aside from all these details, another thing (that has to be given proper attention) credit reports typically have errors! 

A 2004 research conducted by the US Public Interest Research Group (U.S. PIRG) revealed that 79% of credit reports are found to have errors. This is such a huge figure considering the actual population count. It is untrue that one could not run away from these errors for by simply following credit report advice one can actually prevent such problems in credit records. But the first question to ask is where to these errors come from? 

Errors come from different directions. First it can be obtained by simple misreading of hand-written documents by an office clerk, or having your name misspelled. A typographical error can also hinder an error-free document in addition to these; errors can also be an intentional mistake. What does this mean? Yes, lenders can sometimes intentionally set inaccuracies on one’s credit statement so as to keep a person as their customer. Remember that credit reports form credit reporting agencies can be viewed by lenders (even competing companies) and so to protect against competition, lender A can manipulate your credit record so you will not become attractive potential customer to lender B. 

Moreover taking credit card companies as example, according to Ed Mierzwinski, consumer program director of U.S.PIRG, their withholding of important information like the credit limit to the report that they are sending to the national credit reporting agency actually causes lower credit scores for the consumer.

Aside from office-processing generated errors and intentional inaccuracies by the party extending credit, errors can also come from you. Yes, you can add up to the imperfections on your record but if you take time to follow some credit report advice; you can have your own wound healed. 

You can create errors at your own risk by not using the same name to all your transactions, by not double checking all the forms you are filling up, by not providing important details such as your Social Security number and your middle initial and by not reviewing your credit report regularly. Take all the “nots” from this statement and take these as credit report advice. 

Being cautious about having erroneous record by following credit report advice is very much important especially nowadays where sharing of credit records and scores are becoming more and more rampant. Today, even people who have nothing to do with credit-offering business are taking advantage of these meaty pieces of document to be a basis for their particular concern such would include insurance companies, landlords and employers. 

If sharing of credit information now crosses boundaries, better make sure that what they share about you is not bound by inaccuracies, follow credit report advice so as to avoid errors and so its’ replication.

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