Unfortunately, if you do not check your credit report frequently, errors can go unnoticed, ultimately impacting your finances considerably. As such, it’s important to understand what errors are most common so they can be quickly identified and remedied. In addition to exploring these matters, the following blog will also detail how these mistakes can negatively impact your credit in the long term and the importance of working with a Los Angeles, California inaccurate account information disputes lawyer to discuss your legal options.
What Credit Reporting Errors Are Most Common?
In general, two primary forms of credit errors can impact your report and score. The first are mistakes regarding your personal information. For example, if your name is misspelled, you are listed at an outdated address, or your Social Security number is incorrect, you may have a difficult time procuring loans. While these errors will not directly lower your credit score, you’ll find that lenders may deny your application as the information on your application does not match what is listed on your credit report.
The other kind of error can have a direct impact on your credit score, as these are account information errors. Common mistakes include, but are not limited to, the following:
- Listing duplicate accounts
- Including debts that have been discharged
- Failing to remove debts after the reporting period has elapsed
- Mixed files
- Incorrect reporting of account details, such as late payments or incorrect dates on which the account was opened
- Listing open accounts as closed
- Listing accounts as delinquent
What Are the Long Term Impacts I Can Experience?
Unfortunately, if you do not regularly check your credit report, you may find that the errors listed on your account can have detrimental impacts on your finances in the long term. In general, you’ll find that one of the most impactful effects of having credit errors that negatively impact your credit score is that you will face higher interest rates than normal. Because your credit score is lowered as a result of the incorrect information on your account, you will be considered a higher risk to lenders. As such, they will increase the interest rates, meaning you’ll pay much more on the loan over time than you would if your credit score were correct.
You may also find that the incorrect information on your account leads to being denied loans. When lenders examine the credit scores of applicants, you’ll find that these hard inquiries can also lower your credit. As such, the more lenders you apply to after being denied, the more your credit will continue to fall. This can contribute to the cycle, thus continuing to negatively impact your finances.
When your credit report is littered with errors, you’ll find that the impact it can have on your finances is considerable. As such, it is critical to ensure you take the necessary steps to review your credit report frequently and connect with an experienced attorney in the event you discover any errors on your report. At LA Legal Solutions, our dedicated legal team can help you fight to have erroneous information removed from your report so you can best protect your finances. Contact us today to learn how we can assist you.
