Errors in Credit Reports

Surfing the web yesterday I found a really great blog that has a lot of great information on credit. I spent about an hour yesterday reading through his posts and thought I’d share a clip from this article that covers several aspects of credit and credit restoration.

The Mortgage Professor on Credit | 720 Credit Guru

Errors in Credit Reports

The credit reporting system is imperfect. Credit grantors, which are the source of much of the information that goes to the three credit bureaus, make mistakes. Some are due to sloppiness, some to confusion over names, and some are intentional. Some lenders deliberately withhold information on timely payments and maximum credit lines to prevent a customer’s credit score from rising, because it might result in losing the customer.

The credit bureaus also make mistakes. They have no financial interest in keeping anyone’s credit score low, but they do have a financial interest in managing their enormous databases at the lowest possible cost. The more common is your name, the higher is the probability that your file contains information pertaining to someone else with the same name – and that information about you has been inserted into someone else’s file.

Errors from credit grantors and credit bureaus are of both omission and commission. An error of omission is a piece of information which should be in your file but isn’t. An error of commission is the placing of information in your file that doesn’t belong there. Whatever the source, errors can adversely affect your credit report. The last section is a guide on how to remove errors.

via The Mortgage Professor on Credit | 720 Credit Guru.