According to CBS News, approximately 80% of credit reports contain errors. These errors range from minor, such as a misspelling of your name, to an error on your address, to serious such as the same mortgage appearing twice on the report or a loan showing that it is still open when it in fact has been paid off. These latter examples can be enough to deny you future credit, especially if your debt to income ratio is perceived to be too high thanks to the error. I myself found an error on my credit report — a student loan I paid off over 12 years ago still shows as being current.
How do these errors occur? Some may be simple typographical errors, while others occur when a loan is sold to another institution. Regardless of how the errors occur, it is important that you find them and correct them so that your credit report reflects your true credit history. Continue Reading