Errors on Credit Report Can Cost You a Boat Load

Believe it or not credit reports do contain errors. I don’t think any error on your credit report should be considered minor. Because errors in your report can significantly alter your credit score and end up costing you thousands of dollars in the form of higher interest rates, inability to refinance a loan etc. Additionally, there is a growing trend where employers, vendors (if you’re self employed), new business partners etc. are checking your credit before they decide to establish a relationship with you. So, it is ever more important that you diligently monitor your credit report and actively correct any errors you find!

If my long winded advice here doesn’t convince you then read the story of Mark S. Blythe. According to the Orlando Sentential, “Mark S. Blythe’s loans fell through and his business went on the skids — all because a computer glitch spewed bad information on his credit file, sending his credit scores into a free fall.”

The complete fallout of this error is mentioned later in the article:

Blythe’s credit file, in particular, was spammed with several loans he had never taken out with the former R-G Crown and a delinquency record that included 19 late payments. Bank officials said they acted immediately to restore accuracy to the customers’ credit files in early December. But Blythe said he continues to suffer financial fallout long after the bank claims the problem was solved.

“I’m fighting to survive,” he said. “First, my credit scores were trashed and my business came to a halt. Now, my line of credit has been cut off and that’s the last thing I have to operate with. All of this has happened because Fifth Third has not really fixed the errors they reported.”

So, be vigilant. Check your credit report once a year and review it for accuracy. Make sure EVERYTHING is correct. Contact the creditor if you find any errors. Ask them to correct it immediately. Keep track of the dates of your conversation in a log book. Follow up in 30 days.

Mistakes happen. But you and only you are responsible for making sure your credit is in right order. Getting upset with the mortgage loan officer when you urgently need to refinance your home would not be the way to go about solving this problem.

Related posts on Arizona Mortgage Guru for this topic:

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