About False Credit Reporting

A good credit rating is an important asset. If you have positive information on your credit reports and a high credit score, you'll be able to open new accounts and get loans and insurance more easily. The better your rating, the better your loan terms and interest rate. False credit reporting can bring down your score and harm your ability to get loans, insurance and even employment. Fortunately there are ways you can find out about false credit reporting and challenge it.

Definition

False credit reporting is defined as the reporting of incorrect information on your credit report. Some common types of false information include late payments being listed incorrectly or an indication that you are carrying a higher balance than you really have on certain accounts. If you have been a victim of identity theft, the false information may be related to accounts opened by the identity thieves.

Effects

If the false information on your credit reports is negative, your credit score can be reduced significantly. Your score is based on information from the three major credit bureaus, which are Equifax, Experian and Transunion. The false information may be reported on one, two or all three of your reports. Some lenders may only pull one report to review, while others may get a combination report. Either way, if the information they use lists the false information, it will harm your chances of getting a loan or account.

Discovery

You can discover false information on your credit reports by reviewing copies yourself. The law entitles you to one free copy each year from each of the three major credit bureaus. You can request the reports through the official website, and you'll receive your copies online. Review them carefully to see if you are the victim of any false credit reporting.

Repair

You can repair the problem of false credit reporting by filing a dispute with each of the credit bureaus that is showing the false information. Tell them which information is false and why, and include any evidence that you might have to prove your position. If the credit bureau cannot confirm the false information, it must be removed from your credit report. Deleted information will no longer have a negative effect on your credit rating or score.

Warning

If some of the false information on your credit reports is the result of identity theft, fill out a police report in addition to disputing it with the credit bureaus. Send the bureaus a copy of the police report. Call any credit card companies or other creditors involved in any fraudulent reports to explain the situation, and provide them with copies of the police report as well. Have each of the three credit bureaus put a fraud alert on your account to help prevent any other false information from being reported.