Are There Costly Mistakes On Your Credit Reports?

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Many essential issues require your attention in life. Because of this, it is vital to pay necessary attention to a crucial area of your life – your credit. If you’ve never seen a reason to request a copy of your credit report, one reason is to check for errors. Many people’s credit reports contain errors which could lead to such individual being denied credit. When you’re looking to apply for a loan, credit card, or insurance with Denver credit union, your credit condition comes into play. However, when there are errors on your credit report, it could disrupt your plans. If there are costly mistakes on your credit report, it could limit your option or put you in a position where it costs you more to borrow money.

Common Mistakes on Credit Reports

Below are some of the popular mistakes that you could find on your credit reports. Although they might seem like simple errors, they could end up costing you a lot if not rectified as soon as possible. Let’s take a look at them.

Unrecognized Accounts

If your credit report reflects an account that you don’t know or ever applied for, there’s a chance that you’re a victim of identity theft. It could also mean that your credit file is mixed up with someone else’s data. This mistake is expected when the two names are similar.

Outdated Accounts

This error is another costly mistake that might cost you a lot when you try to open an account with Denver credit union. There is usually a timeline for how long negative information can stay on your credit report. Although there are times when exceptions are made, most negative information is removed after seven years. If an account has been in your account for too long, it might be a popular mistake in credit reporting called ‘re-aging.’

Personal Details Error

The errors on your credit report might be in your details and will be noted by Denver credit union. This error could be incorrect names, phone numbers, or even wrong addresses. These errors are sometimes an indication that you’re a victim of identity theft.

Wrong Balance, Credit Limit, or Invalid Dates

If there’s an account that’s reported closed when it’s open or vice versa, it might indicate incorrect account information from your creditor to the bureau. Other account errors like wrong credit limits, incorrect balances, or dates could also mean the same problem.

Duplicate Debts

If multiple creditors are reporting an account to the credit bureau for the same debt, it could reflect a mistake. When you have more than one account showing similar outstanding balances, then there might be an error. It usually occurs when a creditor sells your debt to a third-party debt collector but doesn’t update the new changes’ credit bureau.

 

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