Most people are aware of the fact that maintaining a positive credit score is important if one wishes to qualify for future loans or general financing. However, what many individuals are not aware of is that the majority of credit reports in Arizona and elsewhere in the United States contain inaccuracies. Approximately half of these inaccuracies can do enough damage to lower the consumer’s overall credit score, and subsequently make him or her a poor candidate for lenders. There are numerous avenues through which such mistakes can be made, and the following are some of the most common:
- Furnisher Errors
- Public Record Errors
- Identity Theft
- Credit Reporting Company Errors
Mismerge is a term to describe a specific type of error that occurs when two individuals have the exact same name. For example, two people may have the name Franklin A. Smith, and one of the individuals pays his bills on time and has sterling credit, while the other has money problems. If the information of the latter is accidentally placed on the former individual’s credit report, his credit history will erroneously show a negative score.
Furnisher errors take place when creditors carelessly or purely by accident report timely payments as if they were received late. Even one payment that is recorded as 30 days late can do considerable damage to a stellar credit report, in some cases lowering the score as much as 50 points. Another error that falls into this category is when a lender or creditor fails to acknowledge a discharged bankruptcy and does not update the credit report.
Public records such as liens or judgments can create negative issues for persons who share common names. This type of error is very similar to the aforementioned mismerge error, but it involves public records, rather than actual creditor trade lines.
Identity theft is a problem in Arizona and many other parts of the country and is considered by experts as one of the fastest-growing crimes in America. As its name implies, Arizona identity theft is the theft of an individual’s personal data, which is then used by the thief in a variety of illegal ways, including the following:
- Opening fake credit accounts
- Purchasing items on credit under the victim’s name
- Accessing the victim’s bank account
- Adding oneself as an authorized user on current accounts owned by the victim
- Applying for a mortgage using the victim’s information
Credit Reporting Agency Errors
Credit reporting agencies are also capable of making mistakes that can harm a person’s credit. Such mistakes are made when the reporting agency retrieves the wrong information and passes it on to a lender. For instance, the lending institution may request information on a John Smith who lives in Los Angeles, California, but the reporting agency may accidentally deliver information about a John Smith who lives in New York City. Therefore, the person may subsequently be turned down for a loan or other financial arrangement based on the wrong information.
If you suspect that your rights have been violated or that you are a victim of a credit error, Arizona Credit Lawyers can help. Contact us without delay to minimize your damages and prevent future problems.
Arizona Credit Lawyers – Gary Nitzkin
3260 N. Hayden Road, Suite 210
Scottsdale, AZ 85251
Phone: 480-771-6001 / 480-771-6001