It's no surprise that not every adult's credit is in perfect shape. People make mistakes every day, and financial mishaps can have a much bigger effect than anticipated. Late payments and overused credit cards are common over a person's lifetime, and unfortunately, the consequences can last for years.
However, lower credit scores might not always be a person's fault. A credit score is solely based on the information that credit bureaus have access to. And, like everyone else, the people who report that information make mistakes sometimes. Other times, facts aren't updated promptly, leaving old information to make a big impact.
"Old information can make a big impact on someone's credit score."
According to Credit Karma, there are three mistakes that show up fairly frequently among consumers' credit reports. When discussing financing with your customers, make sure they are aware they need to make sure these pieces of data are correct:
This(specify) can be a serious mistake that can really cost a person points on his or her credit score, among other damaging consequences. U.S. News & World Report explained this could mean that someone has stolen that person's identity and opened an account in his or her name. If someone notices this error, he or she should act immediately to add a security freeze to prevent even more fraudulent accounts from being opened.
Just because an incorrect account is on a person's report doesn't mean the worst, though. Credit Karma pointed out that a simple filing error could have resulted in accounts from two people with similar addresses being added to the same report.
Simply knowing how many accounts are open will help consumers spot a fraudulent account error right away.
Incorrect account details
Sometimes all the right accounts are listed, but the details aren't all correct. To be sure everything is accurate, your customers should check that:
These mistakes aren't as serious as fraudulent accounts showing up on a report, but they should be reported and corrected as soon as possible.
Incorrect personal information
The credit bureaus keep identifying information on hand, like a person's name and address. When someone moves, these entities may not be on the top of their list of places to update their address with. As a result, some people may have some outdated information on file that needs correcting.
Incorrect information on your customers' credit reports can hold them back from getting the financing they need to fulfill a summer goal of theirs, like buying a boat or upgrading their home. Let them know some common mistakes people find on their report, and that they can correct that information if it's wrong.