Consumer Watch: Most common credit report errors

Mistakes can happen in a credit report, and financial specialists say it is important to check for them and fix them right away (KOKH).

A credit report is your lending report card, and a negative mark can hurt your chances of getting a loan, even if the problem is just a mistake. Luckily, technology makes checking on the health of your credit report easier than ever.

Justin Cupler, a personal finance contributor with The Penny Hoarder, says these are the three most common problems.

1. Identity issues:

That means the wrong address, wrong spelling of your name, or even the wrong social security number.

2. Report inaccuracies:

“That is going to be things like you don't have a mortgage, but for some reason there is a $250,000 mortgage on your credit report. Also, you might not have a credit card, but suddenly there is a Visa card showing up on your report,” says Cupler.

3. Balance inaccuracies.

“That's when say you do have that Visa card, but you know there is only a thousand dollars on that card, but for some reason that card is reporting you have five thousand dollars on there,” says Cupler.

It is important to take action to fix these credit report errors as soon as possible. Sites like Credit Karma and Credit Sesame are considered secure, and let you easily check your account.

“You want to make sure your credit report is up to date. You want to make sure it is accurate because if not, you may go in for that car loan, and you may not get it because you find that you have some credit card on your history that is not actually yours,” warns Cupler.

If you see a problem on one of these credit monitoring sites, you can click the dispute button. In most cases, the site can go through the process for you. Disputing an error, especially of an account you don't own, is also important because you could very well be on the hook for the money until you let the bank know it's not your debt.

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