How to Improve Your Credit: Fixing Errors on Your Credit Report
The journey to improving your credit may seem like a challenge, but it's a process that takes time and discipline. So far, the steps we've covered to improving your credit include:
Fixing errors on your credit report is another way you can improve your credit. Why? Because mistakes on your credit report can negatively impact your credit history, which could hinder you from getting approved for financing.
According to the Consumer Financial Protection Bureau (CFPB), incorrect information listed on consumers' credit report is the number one complaint the CFPB receives. Additionally, a study by the Federal Trade Commission found that 26 percent of participants identified at least one error on their credit report, and 5 percent were paying higher interest rates due to those errors. The study also found that about 10 percent of consumers who disputed errors found in their credit report wound up with better credit scores, making them more eligible for better loan or financing terms.
What are common errors you should look for in your credit report?
- Mistakes in your name, phone number or address
- Loans, credit cards, or other accounts that are not yours
- Reports showing late payments that you paid on time
- Accounts you closed that are listed as open
How can I fix errors found in my credit report?
The CFPB suggests checking your credit report at least once a year to keep track of your credit history. If there are errors in your credit report, you can go about getting them fixed by first contacting the credit reporting agency and the creditor that provided the information. Explain what you think is wrong and why, and include copies of documents that support your dispute.
Your credit reports will come with instructions on how to dispute mistakes and/or request a fraud alert. You can get one free credit report from each of the big three major credit bureaus —” Equifax, Experian and TransUnion —” every 12 months. To obtain a copy, visit annualcreditreport.com or call 877-322-8228.
If you are on a journey to improving your credit and need help getting approved to finance a vehicle, a car dealer enrolled in the Credit Acceptance program can help. Simply fill out the Start Your Credit Approval form on our website to get started!