Debt Settlement Scams

It has been stated in more than one study that over 70% of all credit reports contain some kind of error. These errors can dramatically affect your credit scores and even cause problems getting credit cards, buying a car, home or even getting that dream job.

Have you ever wondered how credit report errors happen? Understanding how mistakes on your credit reports can happen is a critical piece of the puzzle when it comes to repairing your credit and increasing your credit scores.

Often when a credit report contains errors, it is often because the report is incomplete or it contains information about someone else. This typically happens because:
? The person applied for credit under different names (Robert Jones, Bob Jones, Sr. or Jr. etc.)
? Someone made a clerical error in reading or entering of the name or address information from a hand-written application.
? The person gave an inaccurate Social Security number, or the number was misread by the lender.
? Loan payments or credit card payments were inadvertently applied to the wrong account.

As you can see, mistakes can and do occur for these and a variety of other reasons. In addition to these types of credit errors, there are other types of credit errors that occur that can also have a negative affect on your score.
These can and often do include:
? Late payment information on your report that is old and outdated.
? Inconsistent credit limits being reported.
? Good credit accounts and payment history omitted.
? Showing the same loan reported more than once.
? Showing different balances that are due.
? Wrong information about the last activity date in an account.

These are just a few of the additional types of errors found on credit reports. To make matters even worse, consider that there are three major credit agencies or bureaus ? not one. Your lender may choose to report to any or all of the bureaus, and each bureau can make any or all of the mistakes just mentioned.

While the above mentioned mistakes, errors or omissions are bad enough, they do not even take into account the rising tide of identity theft or fraud which can absolutely wreck havoc on your credit report and credit scores and take quite a while for you to repair your credit.

However that having been said?

In their defense, the three credit bureaus; Equifax, TransUnion, and Experian have the overwhelming task of managing the credit files of over 700 million people worldwide. Accept the fact that occasionally they?re going to make mistakes. Don?t take it personally, and don?t barrage them with frivolous letters ? get involved, take control, and increase your credit scores. Having a clean, accurate credit report will increase your credit scores and is essential in today?s world.

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