Credit affects much of your daily life — and sometimes in ways you don’t expect.That’s why it’s so important to watch out for credit reporting errors.They can lower your credit score and increase the interest you pay on your loans.That’s why we wanted to dedicate this blog to covering 4 of the major ways your credit report can hurt you… and what you can do about it.So without further ado, let’s jump right in:
Credit Report Errors Make It Difficult for You to Be Approved for New Credit
If there’s a mistake on one of your credit reports, that mistake could be dragging down your credit scores. And if that’s the case, you could encounter difficulty in getting approved for new credit. Common credit report mistakes include incorrect personal information (such as your birthday or social security number, and even the spelling of your name), someone else’s information showing up on your report, duplicate accounts, and incorrect details on your accounts. If any of these mistakes are on one of your credit reports and the information is negative, your credit scores can suffer for it.
They Cause You to Be Charged Higher Interest Rates
Not only might you have trouble getting approved for credit if there are mistakes on your credit report, but credit you are approved for could come with a higher interest rate. Interest rates are a lender’s way to mitigate risk. The more your credit profile shows that you might not repay your loan or line of credit, the higher the interest rate you’ll likely be charged. That’s why having good credit is about more than getting approved for loans — it also helps you get approved for better interest rates. Higher interest rates mean higher lifetime costs of any debt you take on. Therefore, a mistake on one of your credit reports could end up costing you money.
Credit Report Errors Make It Hard to Get Insurance
Your credit profile doesn’t just impact your finances. Nowadays a variety of companies check your credit, from insurance companies and utility companies to landlords. That means a mistake on your credit report could also make it difficult to get a new apartment, or your auto, renter, or homeowner insurance could cost more.
They Make You Look Responsible For Unauthorized Accounts
Finally, if someone else’s accounts erroneously show up on your credit report, then you could end up looking responsible for credit you never authorized. This can seriously hurt your credit scores if any of those accounts have late payments, end up in collections, or are otherwise managed poorly. Mistakes on your credit report can affect your life in numerous ways, and it’s important to dispute any errors you find immediately. Keeping up the simple practice of reviewing your credit report regularly and disputing any mistakes will prevent costly credit report errors from interfering with your life.We understand that’s usually easier said than done. That’s why we created Dovly - the perfect tool to help you get your credit score, find any possible mistakes and dispute them quickly and easily.Want to learn more?Then click here!