Credit Report Problems

• Inaccurate Information Provided by Creditors—This incorrect information might include grossly miscalculated credit balances, incorrect notations of late or missed payments or other inaccurate adverse complaints against you. Sometimes, a creditor's simple mistake of incorrectly imputing a Social Security number can result in someone else's credit information being linked to your credit report. Certain steps must be taken in order to have the creditor fix any misinformation on your credit report.
• Problems Caused by Identity Theft—You might find that there are accounts that you never even opened listed on your credit report. When that happens, it is often the result of identity theft, or someone else stealing your personal information to open credit in your name. The consumer will need to dispute these accounts so they can be removed from his or her credit report.
• Improper Handling of Disputes—When consumers make credit report disputes, the Fair Credit Reporting Act dictates that the credit reporting agencies and creditors must conduct timely investigations into whether any inaccurate information was reported. Sometimes, these agencies or credit companies do not conduct thorough investigations or they do not respond to the disputes in a timely manner, which can result in unfair outcomes for consumers. In these cases, the agencies and/or creditors can be sued.

In February 2013, the Federal Trade Commission announced results from a study in which one in four study participants (about 25%) found errors on their credit reports that could potentially impact their credit scores. It is obvious that the credit reporting system is not perfect, which means that you will have to be vigilant about any mistakes that could harm your financial stability.