How to Correct Wrong Information on a Credit Report

Many consumers may have incorrect information on their credit report, leading them to pay higher interest rates and interfering with their ability to qualify for loans.

Common credit report errors or misinformation may include the wrong name, address, or phone number, accounts that have been closed but are still listed as open, or the same debt listed multiple times. Additional errors may include accounts that belong to someone who has a similar name as yours. Consumers may also be able to check for payments that were made on time but are listed as being late, and incorrect account balances.

According to a recent study conducted by the Federal Trade Commission, as many as one in five people may have at least one error on their credit report. According to the FTC study, 20 percent of consumers had some type of wrong information on their credit report. Four out of five consumers who disputed these errors experienced some type of modification of their credit report.

Approximately 10 percent of consumers who modified the incorrect information found on their credit report saw a change in their credit score, with one in 20 people experiencing a credit score change of more than 25 points.

What are the Consequences of Incorrect Information on Your Credit Report?

Having wrong information on a credit report may result in several unfortunate consequences. Incorrect information may potentially lower your credit score, or affect your ability to qualify for loans. This misinformation may also inhibit your ability to open new lines of credit or access your credit. Additionally, this incorrect information may lead you to have higher interest rates on your mortgage or credit cards.

How Do You Fix Wrong Information on a Credit Report?

If you review your credit report and find incorrect information, you may be able to dispute these errors with the credit agency you received the report from. According to Business Insider, credit agencies are required to investigate reports of inaccurate information within 30 days. By sending the credit agency evidence showing that the information is wrong, you may be able to correct the errors before they affect your credit score further.

However, in order to prove that there are errors on your credit report, you must have documentation to support your claims. Keeping financial records may aid you in the event that you need to dispute errors on your credit report.

How Can You Avoid Wrong Information on a Credit Report?

In order to avoid having wrong information on your credit report, consumers are recommended to check their credit reports regularly. Consumers are able to obtain a free copy of their credit report once per year from credit bureaus Equifax, Experian, and TransUnion. While these credit reports may each be slightly different, consumers may want to be on the lookout for loans, accounts, or lines of credit that don’t belong to them, as well as other errors.

While some incorrect information included on credit reports may simply be the result of unintentional errors, both Equifax and Transunion have been accused of inaccurately reporting consumer credit information in the past.

Providing wrong information for a credit report is a violation of the Fair Credit Reporting Act (FCRA), and victims may be able to pursue legal action if credit reporting agencies do not remove or correct inaccurate information in a timely manner. If these agencies do not correct the errors, or have willfully violated the FCRA, victims may be able to pursue legal action against them.

Join a Free Credit Report Errors Lawsuit Investigation

If you have errors on your credit report, you may qualify to participate in a credit report lawsuit investigation.

Get a Free Case Evaluation Now

This article is not legal advice. It is presented
for informational purposes only.