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Some Reasons Why Errors Occur in Credit Reports

By Karen Anderson
Published: Thursday, October 8th, 2009

From all the credit report tips that you have read so far, you are now convinced that you should make sure that all information in your credit report should be personally checked by you. Credit bureaus are prepare your credit report but if they make mistakes more than half of the time—76% of time, actually. As you may now know, you are entitled to a free copy of your credit report once a year so you can take advantage of this and check all information that was entered into your credit report. If you find inaccuracies, dispute it.

How come credit bureaus make mistakes when they are supposed to have conducted extensive investigation before preparing your credit report? This must be the question that is presently running through your head but is not discussed by most credit report tips. Well, this is a proof of the cliché that we are humans and therefore we make mistakes. Although aided by technology, it is still humans who enter data into a computer in the process of preparing your credit reports. They can easily press the wrong key without intending to.

Also, many credit report tips will tell you that creditors and credit bureaus can have a miscommunication. When miscommunication is at work, it is possible that someone else’s credit balance can be reported as yours. This can have a big impact on your credit score because if that person has a poor record, then it would be you who would suffer. You can detect an error such as this if you check your credit report and find a balance that you do not recognize.

Inaccuracies can also happen if old data has been entered into your credit report. Your creditor may have reported old balances that have been paid off. All credit report tips will say that records that are timely cannot be disputed, so if you find that old balances have been recorded then you should dispute. Old balances are not timely and are inaccurate. Check your credit report to see if such error has been made by making sure that the balances recorded are all recent and unpaid.

It is a routine for credit card companies, banks and other financial institutions to exchange information electronically with the three major credit bureaus—Equifax, Experian and TransUnion. However, there can be a problem with electronic data exchange because it does not correct errors. This mans that if the data being exchanged contain errors in the first place, so will your credit report. Even if you have successfully disputed these errors, they can reappear on your record so it is important to follow the sound advice of credit report tips to regularly check your credit report for errors. Your creditor may be providing credit report bureaus the wrong information each time. If erroneous information is continually reflected in your credit report after having it reinvestigated then the problem might be with the data that your creditor provides. Always check and be updated in order to keep your record accurate.

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