Your credit report plays a major role in your financial health. It impacts your ability to get approved for loans, rent housing, secure a mortgage, and even land certain jobs. That’s why it’s crucial to review your credit report regularly and check for any errors. Even small mistakes can lower your credit score or cause lenders to deny your application.
In this guide, we’ll cover what types of errors people should look for on a credit report, how they happen, and what you can do to fix them.
Why Reviewing Your Credit Report Matters
Credit reporting agencies collect information from lenders, creditors, and public records to compile your credit report. While most of this data is accurate, errors do happen. Some are minor, while others can have a serious impact on your credit score.
Identifying these mistakes early can:
- Help you maintain a healthy credit score
- Prevent identity theft or fraud
- Ensure you’re not unfairly denied for loans or services
You’re entitled to a free credit report every year from each of the three major credit bureaus—Experian, Equifax, and TransUnion—through AnnualCreditReport.com.
What Are the Most Common Credit Report Errors?
When reviewing your credit report, it’s important to know what kinds of errors to look for. Some can be fixed easily, while others may require a formal dispute. Below are the most common types of errors people should check for:
1. Incorrect Personal Information
Personal details may seem insignificant, but errors in this section can lead to your file being mixed up with someone else’s.
Look out for:
- Wrong name or misspellings
- Incorrect date of birth
- Wrong Social Security number (even a single digit off)
- Incorrect address history
- Phone numbers or employment details that aren’t yours
These kinds of errors may result from data entry mistakes or from your information being confused with someone who has a similar name.
2. Accounts That Don’t Belong to You
Sometimes, credit accounts may appear on your report even though you never opened them. This could be a sign of a file mix-up—or even identity theft.
Watch for:
- Credit cards or loans you don’t recognize
- Joint accounts you didn’t agree to
- Accounts opened in states you’ve never lived in
If something seems unfamiliar, it’s important to investigate right away.
3. Duplicate Accounts
Having the same account listed more than once can negatively affect your credit utilization ratio and make it look like you have more debt than you actually do.
Check for:
- Repeated listings of the same credit card or loan
- Accounts appearing under slightly different names or account numbers
This is usually a reporting error and should be corrected.
4. Incorrect Account Status
The status of an account—such as open, closed, delinquent, or paid—affects your credit score. If this status is reported incorrectly, it can damage your credit.
Pay attention to:
- Accounts marked “delinquent” or “in collections” when they were paid on time
- Closed accounts listed as “open”
- Incorrect payment history (e.g., a late payment when you paid on time)
Even a single late payment can significantly lower your score, so accuracy here is critical.
5. Incorrect Account Balances or Credit Limits
Inaccurate balance amounts or credit limits can affect your credit utilization ratio—a key component of your credit score.
Make sure:
- Your current balances are accurate
- Your credit limits are listed correctly
- Paid-off loans show a $0 balance
High reported balances—even if they’re outdated—can make it appear that you’re overextended, hurting your score.
6. Outdated Information
Some negative information is supposed to drop off your report after a certain time. If it remains longer than it should, it can unfairly drag down your score.
Here’s when certain items should be removed:
- Late payments: after 7 years
- Collections: after 7 years
- Chapter 13 bankruptcy: after 7 years
- Chapter 7 bankruptcy: after 10 years
- Hard inquiries: after 2 years
Review your report for any old negative items that should have been removed.
7. Reinsertion of Previously Deleted Information
Sometimes, an error you’ve already disputed and had removed shows up again later. This is known as reinsertion and is usually due to a mistake in data sharing between lenders and bureaus.
If this happens, you have the right to request the source of the reinsertion and dispute it again.
8. Incorrect Public Records
Your credit report may include public record information such as bankruptcies, judgments, or liens. Mistakes here can have a huge impact.
Look for:
- Bankruptcies that were never filed by you
- Judgments that have been settled or dismissed
- Tax liens that are paid but still listed as outstanding
These errors are serious and should be corrected immediately.
9. Fraudulent Accounts or Identity Theft
If someone uses your personal information to open credit accounts in your name, it can severely damage your credit and finances.
Red flags include:
- Unknown accounts or inquiries
- New addresses you don’t recognize
- A sudden drop in your score for no apparent reason
If you suspect identity theft, place a fraud alert or credit freeze and report it to the Federal Trade Commission (FTC).
How Do Credit Report Errors Happen?
There are several reasons why errors appear on credit reports, including:
- Human data entry mistakes
- Lenders reporting incorrect information
- Outdated or unremoved records
- Shared credit history with family members
- Identity theft or fraud
- Mixed files (where information from someone with a similar name gets added to your report)
Even responsible borrowers can become victims of credit report errors, which is why regular monitoring is essential.
How to Dispute Credit Report Errors
If you find an error, the Fair Credit Reporting Act (FCRA) gives you the right to dispute inaccurate or incomplete information.
Step-by-Step Guide to Disputing Errors:
- Get a Copy of Your Credit Report
Visit AnnualCreditReport.com and download your reports from all three major bureaus. - Identify the Error
Highlight any mistake you want to dispute. Take note of the creditor name, account number, and type of error. - Gather Supporting Documents
Collect statements, payment records, or identity verification to prove your claim. - Submit Your Dispute
File your dispute directly with the credit bureau—online, by mail, or by phone. Always keep a copy of everything. - Wait for Investigation
Credit bureaus usually resolve disputes within 30 days. They’ll contact the lender or creditor to verify the claim. - Review the Results
If the bureau agrees with your dispute, they’ll update your report. If they don’t, you can submit a statement of explanation. - Follow Up
Check your updated credit report to ensure the error was corrected. If not, escalate to the Consumer Financial Protection Bureau (CFPB).
How Often Should You Check Your Credit Report?
Experts recommend checking your credit report at least once a year. However, you may want to review it more often if:
- You’ve been a victim of identity theft
- You’ve been denied credit unexpectedly
- You’re planning a major purchase like a home or car
- You want to monitor your credit improvement efforts
Regular reviews help you stay informed and protect your financial health.
Can Credit Report Errors Really Hurt Your Score?
Yes—some errors can have a significant impact on your credit score. For example:
- A false late payment can drop your score by 60–110 points
- An incorrect collection account may lead to loan rejections
- Misreported credit utilization can make you look riskier than you are
These mistakes can cost you higher interest rates, denied applications, or lost job opportunities.
Final Thoughts
Your credit report is a powerful financial document that deserves close attention. From incorrect personal details to inaccurate account statuses, there are many types of errors that can sneak in and harm your credit.
Make it a habit to review your credit report regularly, understand what to look for, and take immediate action if something doesn’t look right. With the right steps, you can correct errors, protect your score, and maintain better control of your financial future.