A lot of financial transactions depend on your credit report, so it is surprising to find out that it is prone to errors. This is why you are entitled to one free credit report a year- to ensure that if there is anything wrong it can be fixed and not affect your life in a negative manner. Here are some common errors which you should look out for while checking your credit report:
Incorrect details about you
These errors are very common and are not very harmful. This includes any information about your personal life (such as name, age, address) and any mistakes in them. One problem that can occur is that anyone who checks your credit report may think you are untrustworthy because you submitted the wrong information to them.
Debts older than 7 years
As a rule, nothing older than 7 years should show up in your credit report, but they often do. Make sure the dates of any old items are correct, and if 7 years have passed, you need to contact the credit repair company.
Account closing misrepresented
Sometimes accounts which you close yourself might actually be credited to the creditor closing them. If someone sees the report they will assume the account was closed because you did not pay up, even though in reality you closed the account off your own accord. This can be very damaging for your credit report as it shows you as being someone who does not manage their credit, when in reality, you were doing the opposite by closing the account.
Debts from Spouse or Ex-spouse
This is a very common error to see in credit reports. Some states treat the debt of married individuals as the same, while some states keep them separate. If you are divorced your credit rating might still contain the debt of your ex-spouse. If you are in a state where the debt is kept separated you may still see the debt of your spouse in your credit report. Research the laws of your state to find out if the debt is kept separated or is communal and act accordingly.
Debts of other people
Sometimes the records get mixed up, and the debt of someone who has a name similar to you may be attributed to you instead. This is obviously very damaging.
There are many other such errors you need to look out for. Since your credit report is very important when taking a loan, make sure everything on it is correct.