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How Can Credit Report Monitoring Prevent Credit Discrepancy Problems From Happening?

By Derek Brown
Published: Monday, July 12th, 2010

You have probably heard the nightmarish stories of people who have clean loan records but were suddenly denied of a loan application one day—only to find out in their credit report that they have a couple of bad credit records in their name. This is a common mistake ever since credit bureaus started hiring public record vendors to do the job of scouring financial information of various people. If you have a common name and someone who has the same name as yours started incurring bad debts then you might want to check your credit report more often.

While you can file lawsuits against the credit bureaus which suddenly transferred you to subprime rates for your mortgage because of the faulty credit information, it is still best to be in charge of things. And the best way you can do this is by continuous monitoring. You are entitled to one credit report annually from each of the three bureaus and this will help you see if any of them placed information in your report that is not really yours.

This is serious matter because not only do your loans depend on your creditworthiness but future employers who could be looking at your credit information might deny your job application because of this wrong information. Simple typographical errors can jeopardize a lot of things in your life and that is why information discrepancies are no laughing matter.

If you suspect that there are items contained in your credit history that is not yours, see which credit bureau report contained the bad credit information and inform them in writing that there is a wrong credit information contained in your report. While a telephone call direct to the bureau is easier and faster, you have more chances of getting a reply when you write to them. They are given 30 days to father evidences of the bad credit and report to you right after.

Just a simple rule of thumb: do not try to dispute information in your report if you know it is true. The credit bureaus will find out anyway. But if it really is questionable and if the bureau was unable to give you a substantial proof of the bad credit then they will remove the entry from your report.

So if there is any lingering suspicion, follow your gut feel and check your credit report thoroughly for any mistakes.

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