Audit Your Credit Report: How to Spot Errors, Mixed Files, and Inaccuracies.
Opening a credit report for the first time can feel like a lot. You do not need to understand every line. Start by looking at four things: your information, your accounts, negative information, and anything you do not recognize.
First, Get All Three Reports
You have credit reports from Equifax, Experian and TransUnion. You can review all three for free at AnnualCreditReport.com, the federally authorized website for free credit reports. Checking your own reports does not hurt your credit score. Review all three because the information may not be identical.
1. Check Your Information
Review your:
- Name
- Current and previous addresses
- Identifying information
- Employment information, if listed
Request the removal of any addresses, phone numbers, or employers that are out of date or incorrect. Pay close attention to information that has no connection to you.
2. Review Your Accounts
For each account, look at:
- Who is reporting it
- Whether it belongs to you
- Current balance
- Credit limit, when applicable
- Payment history
- Whether it is open or closed
- Whether any payments are reported late
Do not immediately dispute a company name you do not recognize. Accounts can be transferred or sold, so investigate first.
3. Look at Negative Information
Pay attention to:
- Late payments
- Collections
- Charge offs
- Repossessions
- Foreclosures
- Bankruptcies
Most accurate negative information can generally remain on a credit report for about seven years. Bankruptcy information can generally remain for up to ten years. Paying a debt does not necessarily erase its history. The account may be updated to show that it was paid while the previous negative information remains until its reporting period expires.
4. Look for Information That Is Not Yours
Watch for accounts, addresses, or other information you do not recognize. Sometimes information belonging to another person can mistakenly become associated with your credit file. This is called a mixed file. Other times, an unfamiliar account could indicate identity theft.
If something is not yours, investigate it. If you discover that someone actually opened or used credit in your name, visit IdentityTheft.gov for an official recovery plan.
What About Credit Inquiries?
Your report may also show companies that accessed your credit. A hard inquiry generally occurs when you apply for credit. Checking your own credit is a soft inquiry and does not hurt your score. If you see a hard inquiry connected to an application you never made, investigate and dispute it.
What Should You Do If You Find an Error?
You have the right to dispute inaccurate information. You can submit a dispute to the credit bureau reporting the error and contact the company that provided the information. Credit bureaus generally have 30 days to investigate. Keep copies of documents supporting your dispute and records of any communication.
Most importantly, a dispute is for information that is inaccurate or incomplete. It is not a way to automatically remove accurate negative information.
Why This Matters
Your credit score is based on information in your credit history. Before worrying about the number, make sure the information behind it is accurate. You do not need to memorize your credit report.
Know what belongs to you, what is being reported, and whether it is correct.
Sources: AnnualCreditReport.com, Consumer Financial Protection Bureau, IdentityTheft.gov