Did you know that it’s very probable that not all the information on your credit reports is accurate? While we all like to believe that companies and credit reporting agencies are diligent about only reporting factual information, the reality is that having a truly accurate credit report is more rare than you may think.
A recent divorce, people with very similar names or social security numbers and incorrect data entry are all possible reasons for erroneous information being reported on your credit.
While these discrepancies may not seem like something to be overly concerned about, the truth is that poor reports can have disastrous impacts on your financial health. Are you considering buying or lease a new car in the near future or refinancing your mortgage? Negative reports on your credit reports can easily disrupt your financial plans.
We recommend that you check your credit reports once a year using the free credit report you’re entitled to by law. In addition, stagger the ordering of your three major reports every three months throughout the year to give you a long-term view of your credit.
Should you find incorrect or completely unrelated information on your credit report or if a creditor refuses to correct their error, you have legal protection through the Fair Credit Reporting Act.