How to Tell If There Are Mistakes to Your Credit Report That Drop Your Credit Score

Your credit score is based entirely on the information that appears on your credit report. If data is missing from your credit report or if your report contains incorrect negative information, your credit score could be artificially deflated. You should check your credit report periodically for mistakes, and look over it in detail about six months before applying for a mortgage to ensure that you get the best chance of approval with a low interest rate.

Instructions

1

Navigate to the Annual Credit Report website (see Resources). This government-authorized site is set up to give you access to one free credit report per year from each of the three national credit bureaus.

2

Enter your personal information to view your credit reports from Experian, Equifax and TransUnion. Because the credit bureaus manage your reports separately, you will need to search all of them for mistakes.

3

Look at the personal information section of each credit report and check that your Social Security number is correct and that your name and address are listed. It is okay to have past addresses and alternate forms or spellings of your name on the report.

4

Scan the accounts listed on your credit report and confirm whether each one belongs to you. Also, mentally go through all of your open accounts and check that each one appears on your credit report. Missing accounts and extra accounts are both serious problems.

5

Look over the details of each account to ensure that they are accurate. Check the date on which the account was opened, the amount you currently owe, the credit limit if it is a credit card and the payment history.

6

Confirm that any collection accounts listed belong to you and are accurate. These accounts severely damage your credit, so having one listed that is not yours is a serious mistake. You should also ensure that the account status, whether open or paid, is correct.

7

Read the list of creditors listed in the hard inquiries section. Ensure that each of these inquiries was in response to your application for credit. An inquiry you do not recognize could indicate that someone is trying to apply for credit in your name. Do not worry about soft inquiries, which do not affect your score and are likely from pre-approved credit card offers

8

Confirm that any public records listed are accurate. Court judgments, bankruptcy and and wage garnishments all hurt your score.

9

Look at the date posted with all negative information on your credit report. Anything older than seven yearsshould not appear on your credit report. The one exception is bankruptcy, which can remain on your report for 10 years.