The post What Types of Errors Should People Look for in Their Credit Reports? appeared first on Credit Experts | Your Trusted Partner in Credit Solutions.
]]>Late Marks on your credit report could be inconsistently reported and may lead to correction via credit repair means.
There are multiple errors on consumers’ credit profiles, including inconsistencies in a trade line payment history. Unfortunately, we frequently encounter such errors on many consumers’ credit reports. As a credit repair company Florida, it is our responsibility to investigate the reasons behind these obvious inconsistencies in a trade line’s payment history.
The primary questions that arise are whether the account is genuinely late or if there was an error on the part of the bank, also known as the data furnisher. A data furnisher collects the account’s information and provides it to credit reporting agencies like TransUnion, Experian, and Equifax. Examples of data furnishers include banks, finance companies, and collection agencies.
Illustrating the Best Example through a Credit Audit
In the following illustration, which involves a consumer whose credit was impacted by a 30-day late mark, it becomes apparent that there is an inconsistency among the credit bureaus—TransUnion, Experian, and Equifax.
To understand the information presented in this chart, one must know its purpose. The chart illustrates the payment history of an account from December 2017 through January 2017. As indicated by the green “OK,” the account was being paid on time. However, in either July or June, there appears to have been a missed payment, denoted by the number “30.” Therefore, in order for an account to receive a 30-day late mark on a credit report concerning its payment history, the account must be overdue by a full 30 days from the due date.
How can someone be late in June 2017 according to TransUnion, not late on June 17 according to Experian, and then late again on June 17th according to Equifax?
Furthermore, another inconsistency can be observed in July 2017, where the consumer was not late on that specific day or month according to TransUnion and Equifax, but Experian indicates a 30-day late payment based on the numeric value of 30.
At Liberty Credit Experts, our responsibility is to analyze credit profiles and identify inconsistencies in credit files that suggest either miscommunication between data furnishers and credit reporting agencies or inaccurately recorded payment histories for trade lines.
A tradeline, just to clarify, refers to an item that appears on a credit report. For instance, a credit card product is considered a tradeline (specifically revolving credit), and a mortgage (installment loan) is also regarded as a tradeline that is reported on a credit report. Similarly, an auto loan (another type of tradeline) is reported on a credit report as well. While the example provided pertains to a misreported payment history on a credit card, it is important to note that errors of this nature can occur with various types of tradelines that are included in a consumer’s credit profile. Other aspects related to tradelines include limits, dates open, past due amounts, balances, and several other details that you can learn more about by reading our blog on the anatomy of tradelines on credit reports.
The Impact of Inaccurate Reporting and Consumer Rights under the Fair Credit Reporting Act
So how do we fix situations like this? How do we reverse situations like this?
Inaccurate remarks or payment history reporting can have a significant impact on an individual’s overall credit health. A late mark can be highly detrimental to a consumer’s credit report, leading to a substantial decrease in their credit score and creating difficulties when applying for loans, credit cards, auto loans, or business loans. It is important to note that this late mark on a credit report may not be justified or accurate, as payment might have been made in a timely manner to avoid such a late mark.
Consumers have specific rights under the Fair Credit Reporting Act, which was enacted in 1970 to ensure accurate information reporting on their credit profiles. This law grants consumers the ability to dispute information on their credit report if they know for a fact that they were not late on an account and have evidence of making the payment towards that debt, including proof of receipt or cashing of the payment by the receiving party. The Fair Credit Reporting Act empowers consumers to directly dispute with the credit reporting agencies, and amendments to the act provide the ability to dispute directly with the data furnishers as well.
Initiating a Proper Dispute: Correcting Inaccurate Credit Reporting
To address inconsistencies and errors in payment history, it is essential to file a formal dispute that clearly outlines the issue and provides evidence of payment received by the data furnisher. Compose a letter that can be mailed or faxed to TransUnion, Equifax, and Experian, requesting an investigation into the reported discrepancies. Include a highlighted payment history indicating the identified inconsistencies or errors.
The credit bureaus are obligated to conduct a reasonable investigation within a maximum of 35 days and respond promptly with the results of their investigation. They will communicate directly with the data furnisher, notifying them of the consumer’s dispute and providing an explanation of the issue. The data furnisher will then verify or correct the reported information.
Additionally, disputes can be initiated directly with the data furnisher, such as a credit card company or a bank. In this case, a dispute letter can be sent via mail or fax to the original creditor responsible for furnishing inaccurate, inconsistent, or invalid information.
By sending dispute letters to both the original creditors and credit bureaus, consumers demonstrate their proactive efforts in addressing the negative impact caused by inaccurate entries on their credit files.
Credit Profile Analysis and Dispute Resolution Services at Liberty Credit Experts
At Liberty Credit Experts, we offer a complimentary consultation and credit monitoring services Florida, where we thoroughly analyze a consumer’s credit profile, meticulously examining each trade line and assessing every aspect of it. One crucial aspect of this scrutiny is ensuring consistency in payment history across all trade lines. If we identify any discrepancies, we promptly bring them to the consumer’s attention. The consumer will then confirm whether they were indeed late or not. If the consumer confirms they were not late, we take proactive steps to initiate a dispute on behalf of the consumer, aiming to rectify any inaccurate information on their credit file.
Wrapping Up!
It can be concluded that the information should be consistent across all three credit bureaus, namely TransUnion, Equifax, and Experian, as the data furnisher reports the same data to each of them. However, despite this expectation, we often encounter inconsistencies in the payment history of consumers’ credit files. If a consumer was indeed late on a payment, one would expect this lateness to be reflected consistently across all three credit bureaus. However, as illustrated above, this is not always the case.
These inconsistencies and errors found in consumers’ credit profiles are precisely why Liberty Credit Experts are dedicated to assisting consumers in ensuring that the information on their credit profiles is verifiable, timely, and, most importantly, accurate. Through credit repair strategies, we have been able to help numerous consumers not only in the Boca Raton, Florida area but also throughout South Florida.
Author: 
Gabe Kutlin l Credit Strategist
CEO, Liberty Credit Experts
The post What Types of Errors Should People Look for in Their Credit Reports? appeared first on Credit Experts | Your Trusted Partner in Credit Solutions.
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