Credit reporting allows businesses and individuals to make informed decisions. Landlords and lenders often perform credit checks before deciding if they want to do business with an individual. Employers may even review credit reports as a way of determining how trustworthy certain applicants actually are.
The three major credit bureaus retain records of an individual’s outstanding debts, as well as any judgments or bankruptcies in their recent history. Credit reports provide seven years of financial history and a score that summarizes an individual’s overall use of credit. People tend to assume that their credit reports are accurate, but errors are relatively common.
How can those hoping to apply for loans, rental housing or job opportunities protect themselves from inaccurate credit report information?
With an in-depth review
Consumers have the right to access their credit reports without paying for them annually. Making use of that right can be a smart decision. People can review their credit reports once a year to ensure that the information is correct. They can verify the balances that they owe and the number of open accounts on their credit report.
They can also take action if there are any surprise blemishes, such as a judgment or past-due payments that they believe are inaccurate. Some people even download apps or sign up for services that send them immediate alerts when there are significant changes to their credit reports. Tracking a credit report is an important means of ensuring its accuracy.
With requests for corrections
Perhaps there is another person with the same name and date of birth. The credit bureaus could make a mistake and report details about one person on the other’s credit report. Maybe there are mistakes such as late payments reported by a lender who made an internal payment processing error.
In some cases, people may be able to correct minor inaccuracies by reaching out to lenders and creditors to update their records with the credit bureaus. Other times, they may need to submit a request directly to the credit bureau seeking the correction of inaccurate information. That process can be quite challenging.
Partnering with a lawyer familiar with consumer protection regulations can expedite the process of updating an inaccurate credit report. An attorney can also educate their clients about their rights and a firm when they may need to take legal action because of the harm caused by an inaccurate credit report. Being proactive about monitoring and updating credit reports can help people better ensure that they can readily access employment, financial resources and other valuable opportunities accordingly.