Making sure your credit report reflects your loan balances and credit card accurately is one frustrating challenge.
Inaccurate balances lower your credit score, which will result in higher interest rates.
They can keep haunting you, as potential insurance companies, lenders, creditors, and employers continue to see that erroneous information and base their premium, lending, and hiring decisions on it.
Balance errors occur for many inaccuracies.
Human error is one of the most common causes.
Something as innocent as mis-keyed entries or transposed numbers could taint your credit report.
Thus, it is important to regularly review the balances listed on a report very carefully.
Moreover, in some cases credit bureaus and creditors accidentally publish the balance of another person as your own, which will negatively affect credit report and score.
In many cases, your creditors may have reported outdated data or even balances you have already since paid.
Balance errors also occur due to electronic data exchange problems.
What can you do to correct inaccurate balances on your credit report? There are some tips you can follow to correct these mistakes and ensure they are gone for good.
The first step is to determine where the error comes from.
Contact the creditor who shows the erroneous balance and explain the problem in detail.
In addition, ask their representative to look at the balance.
If the balance is inaccurate, ask a creditor to correct it as soon as possible.
If possible, follow up in writing and attach a copy or printout of your latest balance statement.
Of course, you follow up later to ensure the balance in your credit report has been corrected.
If your creditor shows the balance accurately, the problem likely comes from the credit bureau itself.
In such case, you need to contact the credit bureau and request that the balance be corrected immediately.
Again, follow up in writing and request to investigate this inaccurate balance.
Provide supporting documentation like a proof that you have already paid a balance off or your latest balance statement.
Resolving balance errors is for your peace of mind as well as your financial future, so keep a vigilant eye on your balances.
If you find a balance error reported on your credit report, you need to track it down and then get rid of it as fast as possible.
Stave off credit report problems even before they start, while maintaining a high credit score.
Monitoring your credit report is never an easy task, but it is definitely vital to correct any inaccurate information.