How to tackle errors in your credit report

As we all know that credit report is a report which helps the lenders and financial helpers to check the credit worthiness of the credit applicant. These reports help them to forecast the payment behaviours of the customers. It is also true that credit reports are not always accurate. They may contain some errors.

Now when we are aware of what a credit report is, it is time to learn how we can detect errors in the credit report. Errors can be minor or major.

Errors can be identified by reading the whole credit report very carefully. The credit report has the information regarding all the accounts that have been taken by a customer in his entire life cycle. It includes those accounts as well which are closed.

 Errors can be of different types like spelling mistake in the customer’s name, wrong residential address updated in the report etc. These errors can be termed as minor errors. These errors will have a small impact on the credit history of the customer.

There are some errors which can have a major impact on the credit history of the customer. Wrong account updated, incorrect status of the account, wrong outstanding amount updated in the report, etc. These are those errors which can have a major impact on the credit report and can also affect the credit history.

Errors can have a negative impact on the credit history which will also reduce your credit score. There are some steps that you should take in order to eradicate errors for your credit report.

• Firstly you should inform the lender or the financial institutions regarding the mistakes that have been identified in the report.

• Secondly you should inform the bureau regarding the same issue.

• Provide the necessary proofs to the lenders as well as to the bureaus.

• Maintain a strong follow up regarding your issue.

These are the steps that will help you to identify errors in your report and will help you to improve your credit score and increase your creditworthiness.