ATLANTA, April 24, 2012 (GLOBE NEWSWIRE) -- While credit reports typically provide a complete and accurate look at our credit history and tell a potential creditor how likely we are to repay them, errors on credit reports can cost consumers money. Misreported late payments and accounts that aren't actually yours can affect the interest rate you pay when borrowing money and can, in some cases, prevent you from getting credit.
"Check your credit report regularly and address any incorrect information promptly," cautions Laura Creamer, financial education specialist for CredAbility. "While many errors are common and easily corrected, others can be a sign that you have been a victim of identity theft and should be addressed quickly." CredAbility shares common errors consumers should look out for:
Errors in personal information
Common errors include variations in names, including the addition of a suffix such as Jr. or Sr., or an incorrect middle name, addresses where you have never lived, and incorrect social security numbers. While errors in personal information might be more common for consumers with common last names, they can happen to anyone.
Incorrect balances on accounts
The balance on your accounts listed may be inaccurate. These balances, along with your available credit, are often used to determine how good a candidate you are for future credit, so correcting inaccuracies is important. Providing proof of balances with receipts is a great way to document the error to the credit bureau.
Late payments, collections and charge-offs
This is particularly common with medical bills. If your credit report shows a late payment that was actually made on time or an unpaid bill that you have paid, provide proof of payment to the credit bureau. Collection and charge-off activity where the creditor has taken your balance due as a loss will also affect your credit rating, so be sure that only accurate information appears and take steps to document any incorrect reports. Judgments, late payments and collection activity typically stay on your credit report for seven years, so be sure that any old information is addressed.
Accounts that aren't yours
Carefully review the list of accounts that appear on your credit report to be sure they are actually yours. Errors sometimes occur when a family member, former spouse or someone with a similar name or address opens a credit account. In other cases, there may be fraudulent activity where someone has deliberately opened an account in your name. Knowing what accounts you have and checking your report regularly is an important step in protecting your credit.
Inaccurate account information
A good mix of credit types and a record of paying on time will have a positive impact on your credit score. Be sure that the information reported on your account is correct—such as the length of time the account has been opened, the type of account it is (usually revolving or installment), the credit limits and the payment history.
Correcting misinformation
If you find an error on your credit report, you can file a dispute by going to the website of any credit bureau. CredAbility also has a sample dispute letter on its website. (Link: http://tinyurl.com/disputeletter) Correcting a wrong address or other personal information is usually simple. Disputing late payment or collection reports requires providing documentation such as receipts or proof of payment. If you believe you have been the victim of identity theft, you may need to file a police report in addition to contacting the credit bureaus. All written communication with the credit bureaus should be sent via certified mail.
About CredAbility
CredAbility is one of the leading nonprofit credit counseling and education agencies in the United States, serving clients in all 50 states plus the District of Columbia, Guam, Puerto Rico and the US Virgin Islands, in both English and Spanish. In addition, we provide in-person counseling at offices in five states in the southeast.
Founded in 1964, CredAbility is a family of Consumer Credit Counseling Service agencies that includes CCCS of Greater Atlanta, CCCS of Central Florida and the Florida Gulf Coast, CCCS of Palm Beach County and the Treasure Coast, CCCS of East Tennessee, CCCS of Central Mississippi and CCCS of Upstate South Carolina.
The nonprofit agency is accredited by the Council on Accreditation and is a member of the Better Business Bureau and the National Foundation for Credit Counseling (NFCC). Governed by a community-based board of directors, CredAbility is funded by creditors, clients, individual donors and grants from foundations, businesses and government agencies. Service is provided 24/7 by phone at 800.251.2227 and online at www.CredAbility.org
The CredAbility logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11910