Your credit score is more than just a number. It influences your ability to secure loans, rent an apartment, or even get a job in certain industries. Because of its importance, errors on your credit report can cause significant problems. Unfortunately, these mistakes are not uncommon, and they can leave consumers financially disadvantaged. Continue reading and reach out to an experienced New Mexico credit reporting lawyer from Feferman, Warren & Mattison to learn about how inaccurate credit reporting can affect your credit score and what you can do to remedy the issue. Here are some of the questions you may have:
What Types of Errors Commonly Appear on Credit Reports?
Many people assume their credit reports are accurate, but mistakes happen frequently. A creditor might report a late payment that was actually made on time. Accounts belonging to someone else could mistakenly appear under your name. In some cases, debts that have already been paid may still show as outstanding. Identity theft can also lead to fraudulent accounts being listed as your responsibility. Even something as simple as a clerical error, such as a misspelled name or incorrect address, can cause confusion. Each of these errors has the potential to affect how lenders view your creditworthiness.
How Can Inaccurate Reporting Impact My Credit Score?
Credit scoring models rely heavily on the information contained in your report. If the data is wrong, your score will not accurately reflect your financial behavior. A single erroneous late payment can lower your score by dozens of points. Multiple inaccuracies can compound the damage. The result may be higher interest rates, denial of credit applications, or stricter loan conditions.
In short, even one mistake can have lasting financial consequences. These inaccuracies can also affect non-financial opportunities, as many landlords, insurers, and employers use credit reports when making decisions.
What Can I Do If I Find an Error?
If you discover an inaccuracy, you have the right to dispute it. Start by obtaining a copy of your credit report from all three major credit bureaus. Review them carefully to identify any issues. Once you spot an error, you should notify the bureau in writing and provide supporting documentation whenever possible. Under federal law, the credit reporting agency must investigate your dispute within a set period of time, usually 30 days. Feferman, Warren & Mattison can help with the dispute process.
If the information cannot be verified, it must be corrected or removed. In cases where a creditor refuses to fix the problem, an experienced consumer lawyer can step in to protect your rights. When the stakes are high, especially if the errors are causing serious financial harm, consider contacting Feferman, Warren & Mattison for assistance. Our firm has proudly represented countless individuals facing these issues in the past, and we’re here to help you, too.
