How to spot errors on a credit report

Florida residents and others may have a lower credit score than they deserve. This could be because of inaccurate information on a credit report. Anyone who sees erroneous information on their report should take steps immediately to rectify the issue. Even if an error doesn’t impact a person’s credit score, it could still make it harder to get the best rates on insurance and other products.

Except for a Chapter 7 bankruptcy, information on a credit report should come off no more than seven years after it first appears. If information related to a bankruptcy or tax debt does not go away, that may represent an error. If a debt that has been paid off still shows a balance, that might also be a fixable mistake. Debts discharged through bankruptcy should not show a balance on a person’s credit report either.

Other common mistakes relate to a person’s credit accounts or personal information. Examples of such errors may include balances that an individual is not responsible for or accounts closed by an individual but listed as closed by the lender. The wrong name being listed on a credit report is an example of a mistake relating to an individual’s personal information. Such an error could make it more difficult to get approved for a car loan or mortgage.

Those who are struggling with credit card debt or other types of debts may wish to file for bankruptcy. Although it could have long-term impacts on a person’s credit, it may also provide a fresh financial start. This could make it possible to rebuild a credit score while also making it easier to manage future debts. In many cases, creditors are not allowed to contact debtors or engage in collection activities while a bankruptcy proceeding is still pending.