Credit Report Errors

Credit Report Errors

Credit reports serve the valuable purpose of reporting a consumer’s financial credit-related history to companies that are considering whether to extend credit (such as a mortgage, a loan, or a credit card account) to a consumer.  

Although credit reports can provide useful information to these companies, errors contained in credit reports can cause serious issues for both consumers and creditors.  There can be a number of causes for credit report errors, including:

  • mixed credit files,
  • identity theft,
  • or just sloppy record keeping by creditors.

Regardless of the cause, incorrect data contained in credit reports can be particularly harmful to consumers looking to obtain credit, making it appear that consumers have bad credit when that is not actually the case.  This can, for example, cause companies to only offer credit to the consumer with unsatisfactory terms.  Even worse, this can cause companies to wrongfully refuse to extend credit to the consumer altogether.