Monitoring your credit report is more important than you might think. Even if you don’t spot something as extreme as identity theft (knock on wood), minor errors here and there could be damaging your overall credit health. The accuracy of your credit report impacts your ability to secure loans, rent apartments, and even obtain certain jobs. Unfortunately, errors are more common than many people realize, and these mistakes can cause serious financial headaches if left unaddressed.
Common errors people find on their credit report
Use this list to review your own credit report and make sure everything checks out.
Identity and personal information mistakes
Seemingly minor errors can cause major problems—they can lead to confusion with credit agencies and potentially mix up your credit history with someone else’s.
Fraudulent accounts and identity theft
One of the most dangerous types of credit report errors involves accounts opened without your knowledge:
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Credit cards you never applied for
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Loans taken out in your name
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Unauthorized financial transactions
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Accounts resulting from identity theft
Duplicate debt listings
Sometimes, the same debt appears multiple times on a credit report:
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The same collection account listed more than once
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Transferred debts showing as separate entries
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Paid-off debts still appearing as active
Incorrect account statuses
Credit reports can incorrectly show:
Outdated negative information
Negative information should automatically drop off after a certain period:
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Bankruptcies older than 10 years
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Late payments older than 7 years
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Outdated collection accounts
How to fix errors on your credit report
If you do spot mistakes on your credit report, you’ll want to take these steps to submit a dispute.
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Obtain your credit reports. You can request free reports from all three major bureaus (Equifax, Experian, and TransUnion) at AnnualCreditReport.com.
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Document the errors. Review each report carefully for discrepancies and gather any supporting documentation that applies. Make copies of proof (payment records, identity documents). Write a clear, concise explanation of each error.
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File a dispute. I have a more thorough guide to filing a credit dispute here, but what you need to know is there are three primary methods to submit disputes: Online, by mail, and by phone. Online is the most efficient method, but by phone could suffice for simple, straightforward errors.
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Follow up. Bureaus must investigate within 30 days. Track your dispute’s progress until you receive a written resolution. If your dispute is valid, the bureau must correct information and notify other the bureaus to do the same.
How to protect your credit score
Your best strategy is to take preventative measures like checking credit reports annually, using credit monitoring services, and placing fraud alerts or credit freezes if you find yourself a victim of identity theft. In general, do what you can to give away less of your personal data. In cases of significant identity theft, contact the Consumer Financial Protection Bureau or file a report with local law enforcement.
Credit report errors are not just inconvenient—they can be financially devastating. Remember, you are your own best advocate when it comes to maintaining accurate credit information. For more, check out some of my tips for boosting your credit score here.
