Unfortunately, many consumers don’t check their credit regularly. While this may not seem like a big deal for those who don’t regularly apply for loans, it can actually be detrimental to your financial future. A considerable number of consumers report discovering errors on their credit report, and, when left unchecked, these mistakes can have a long-term impact. As such, if you are unfamiliar with the most common credit reporting errors and how they can negatively affect you for years down the line, you’ll want to keep reading. The following blog also explores the importance of working with a San Diego County credit reporting error lawyer to assist you if you discover incorrect information on your report.
What Are Common Credit Report Errors?
In general, there are two primary forms of errors that you can discover on your credit report. The first impacts your personal information, like misspelling your name, including outdated addresses, or a typo in your Social Security number. While these do not directly impact your credit score, they can have a negative impact. When you apply for loans, if the information on your application does not match what is on your credit report, the lender may deny you.
The other form of error directly impacts the information included in your credit report. This includes, but is not limited to, the following:
- Listing a duplicate account
- Mixed credit files
- Incorrect account balances
- Including debts that should have been discharged
- Errors regarding the date an account was opened or when the last payment was
- Incorrectly listing an account as delinquent
These errors can have an immediate negative impact on your credit score. If you do not regularly review your credit, these errors can lead to additional long-term impacts.
How Can These Impact Consumers Long Term?
Credit errors, when left unchecked, can wreak havoc on your life as a consumer. One of the most considerable impacts you can experience as a result of errors left on your credit report is higher interest rates. When your credit score is negatively impacted by incorrect information, you’ll find that lenders will believe you are a risky applicant. As such, you may be approved, but only with higher interest rates on loans. This means you’ll pay considerably more on a loan than if your credit report were accurate and free of errors. Over time, this continued overpayment on loans can lead to financial issues, as it will reduce your disposable income.
In addition, if you are looking to build your credit, errors on your report can make this increasingly more difficult, as you may not be able to secure the loans or accounts necessary to do so. For example, errors can often lead to denials. However, each time you apply for a loan, the lender must conduct a hard inquiry, which can also drop your credit score a few points. As such, with each denied application, you are not building credit, but your score continues to fall.
As you can see, errors on your credit report can drastically and negatively impact your life as a consumer. That is why it’s critical to ensure you take the necessary steps to monitor your credit report to ensure it is accurate, and in the event there is an error, work with an attorney to remedy the issue.
At Barthel Legal, we understand the implications errors can have for your credit. That is why we will do everything in our power to help you fight for the best possible outcome. Contact us today to learn more.
