Should I Fix a Credit Report Typo?

The majority of the 20,000 disputes the credit reporting agencies receive each day are handled by a computer system, and those verified by humans are done at lightning speed, according to Smart Money. Errors on a credit report are common, and they result from lender mistakes and mishaps by the credit agencies. You should not let a typo go uncorrected, because it can cause years of financial headaches.

Identification

You should fix a typo on a credit report, because something such as an incorrect name can cause your file to get mixed with another person's file. If that other consumer has bad credit, you might also receive that negative data. This could cause your loans to cost more, it might provide a unfavorable impression in an employment background search, and it could prevent you from getting certain utilities or services. A typo on an account detail could also damage your credit score. If you have a $10,000 credit limit on a credit card, but the report states you have only a $1,000 limit, your credit utilization ratio (the amount of your debt relative to the credit available) will rise, and that could damage your credit score.

Time Frame

If you discover a typo, you should submit a dispute as soon as possible. Even if the credit rating agencies correct your error, it can take 90 days to update a report, according to Financial Web. Some cases can take months to settle, especially if you have little evidence to support your claim.

Disputing an Error

The credit reporting agencies control your report, so you should dispute the typo with them. However, if the lender reports inaccurate account information, ask the lender to correct the mistake, suggests Laura T. Coffey of MSNBC. Coffey recommends that, instead of using the online dispute form offered by each agency, you should mail a certified letter with copies of your supporting documents. This guarantees the credit agency will receive your dispute.

Tip

When you need a type fixed quickly, consider employing a rapid re-scoring service. This typically costs no more than $50 in 2011, and it can help you fix most errors in days, not weeks. Rapid re-scoring services are not available to the general public, so you have to find a lender willing to act as a middleman to obtain the service on your behalf.