Common Credit Report Errors

When it comes to mistakes on your credit report, there are a few different things which can end up happening. Firstly, the credit reporting agency might make a small error when inputting the details of an entry on to your file.

This type of mistake is often seemingly irrelevant, and has very little effect on your overall credit report or credit score. However, there is a type of mistake which is more important than one of these minor issues. You probably guessed it... it's referred to as a major mistake.

How Major Mistake Occur

A major mistake on a credit report can occur for a number of reasons, including:

• Major error in the entry of that transaction onto the report.
• Fraudulent entry of the transaction.
• Entry as a result of identity theft.

Some reports have found that one in 20 Americans have a fraudulent entry on their credit report which they do not know about. What they don't realise is that this type of entry can cause a major fall in your credit score, and also a major decline in the influence that you have as a consumer down the track.

Fixing A Fraudulent Mistake

Because of the seriousness of fraud in the consumer finance industry, any mistake that is found to be the result of identity theft or outright fraud needs to be referred to an investigative department for further scrutinising.

Usually, it will take up to 30 days for your dispute claim to be processed by the credit reporting agency. Following a full investigation, it will either be decided that the entry is indeed fraudulent - and will therefore be removed from your report, or alternatively it will be found to be a valid transaction - perhaps something you mistook or didn't understand.

What to Do If 30 Days Passes

If you submitted a fraudulent disputes claim to your credit reporting agency, and you haven't heard back from them within 30 days of the submission date, there are a number of avenues that you can go down to ensure a prompt response.

A few things you could try include:

• Credit reporting agency watchdog.
• Internal complaints department at the credit reporting agency.
• Another credit reporting agency to gauge their second opinion.

Whatever you do, know that getting an error or removed from your credit report is extremely important, and should not be delayed.