Credit Report Mistakes to Catch
By now, it should be apparent that credit severely influences one’s ability to procure an auto loan. For this reason, as mentioned in our last post, checking your report is always step one before entering the market. If you have not done so already, visit these two posts; they will help in this respect: “Learn to Read Your Credit Report” and “Where Can I Find My Credit Report?” Now that you have a copy of your report, confirm that there are no errors. Credit report mistakes can happen to anyone, so protect yourself by taking the time to thoroughly read and reread every section.
The Likelihood of Error
Believe it or not, a recent FTC study reveals 26% of consumers discover credit report mistakes. This study compiles eight years of data, involving 1,001 consumers and 2,968 credit reports. Thankfully, of these individuals, credit bureaus amended 80% of the cases. Problems with your credit report will typically be resolved, so long as you bring it to someone’s attention.
Commonly Affected Areas
Look over the following credit report mistakes:
- Inaccurate Information: Ensure all accounts, addresses, employers, payment histories, and other credit items do in fact belong to you. Such mix-ups arise when a person applies for credit under several names or with the wrong SIN number. Sometimes, a person with a common name may run into these issues. As well, clerical errors can affect a credit report.
- Payment Status: Verify that closed, moved, or modified accounts appear as they should. As well, your report should reflect all delinquencies that have been fixed.
- Doubles: Multiple entries — especially negative ones — can devastate a person’s credit score. Instead of a single overdue payment, for example, double entries suggest that you are serial delinquent. Similarly, multiple debt entries show could affect your ability to obtain an auto loan.
- Incomplete Information: Make sure all required fields are filled in. Sometimes paper work is only partially processed, so compare any credit submissions to what’s on the report.
Credit reports can be tricky, so you may need to ask an expert. At Trillium Auto Group, not only can you begin your search for an auto loan, but you can also receive credit counselling by stopping in! Regardless if your score has been injured by error or not, Trillium can arrange an auto loan best for your particular situation, helping you to repair weak areas of your credit report month-after-month.