Monday, February 12, 2018

5 Common Credit Report Errors to Watch For

When it comes to applying for a mortgage loan at the Lake of the Ozarks, your credit score and credit report play an important role in the approval process. In addition to getting approved, your credit score can also affect the terms of your loan. Unfortunately, credit report errors are quite common, therefore, it's important to review your credit report before applying for a home loan to make sure all the information is current and accurate. Keep reading to learn about some of the common credit report errors you should watch for.

1. Incorrect Personal Information. 

The first thing you'll want to check on your credit report is that all the personal information is correct and current. Many people have very similar names and, therefore, their information can easily get mixed up. Ensure that your name is spelled correctly and that your middle initial and/or middle name is listed. Also be sure to review your address, employment information and your SSN. 

2. Duplicate Accounts. 

When reviewing your credit report, check for accounts that are listed more than once. Duplicate accounts make it appear like you have more open credit than you actually do. It also shows that you have more debt than you actually do. Review all the accounts on your credit report for accuracy, ensuring each one is only listed once and that all the accounts do in fact belong to you. 

3. Old Bad Debts. 

After 7 years, credit reporting companies are supposed to remove any bad debts from your credit report. Ensure that anything over 7 years old is no longer listed on your credit report. If you've ever filed for bankruptcy, those discharged debts should also be removed from your credit report. However, your bankruptcy will show on the credit report. 

4. Debts from an Ex-Spouse. 

If you are currently going through or recently obtained a divorce, be sure to remove your name from any joint accounts. This will prevent you from being liable for future debts. Check your credit report after the divorce is final to make sure no new debts from your ex-spouse have been added to your record. Notify the credit reporting companies if any information is incorrect and needs to be removed. 

5. Incorrect Accounts. 

There are a variety of situations that can result in incorrect accounts being listed on your credit report. One issue relates to identity theft, when someone uses your personal information to open a new credit account. Another issue is when a closed account is still being listed on your credit report. In addition to making sure there aren't any incorrect accounts, be sure to check for accounts that are incorrectly reported as late or delinquent. This can happen if a payment is applied to the incorrect account. 

Make sure you report any errors on your credit report to the credit reporting agencies. If you notice discrepancies once you've already begun a mortgage application, be sure to communicate those errors with your mortgage lender at the Lake of the Ozarks. For more information about how your credit report and other factors can affect your Lake of the Ozarks home financing, give us a call at 573-746-7211.

For Lake area news, resources and tips on financial services, please 

Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065

Direct: (573) 746-7211

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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