According to industry experts, it is estimated that up to 75% of all credit reports have errors. It starts with the out-of-date information from your creditors, the credit reporting bureaus, and your creditors and ends with wide-scale errors on your credit report. Let’s look at the details of how it falls into these three categories.
First, your creditors only have to input the information onto credit reports once. Remember, they are not required to report all the information on a credit report that they give to the credit reporting agencies. If the creditors only give the information to one agency, that agency is required by law to input that information on your credit report. Pretty simple.
The problem arises when you lose a bill, and a collection account is placed on your credit report. If this is at a negative level, it can be hard to catch up afterward and it may be difficult to even know that something negative is placed on your credit report. These errors come about when the creditors report information that they have simply not verified. This is one of the biggest hurdles that an individual must jump in order to get his or her credit report in order.

The next type of error that we will look at is the incorrect address information at the bottom of a credit report. Oftentimes, this will cause the credit scores to go down. This is worst on mortgages because every time a new payment is made, the information is sent to the credit bureaus, which may or may not be accurate. This happens because sometimes, the companies can receive the information earlier than others. If this occurs, your credit report will send down a lower credit score. Not monitoring this one is one of the most common mistakes that individuals make in their credit scores and reports.
For those to protect themselves against these errors, they may go with the option of credit monitoring. With this option, you place your money in a bank account where you have complete access to view the activity on the account and place your transaction accordingly. You are notified immediately if something wrong occurs on the account after you have placed your transaction, so you do not have to fall victim to the credit reporting errors that may occur during the online processes. You keep it all in one place and you do not have to look into each individual credit reporting agency.
It is important for individuals to watch their credit score and credit reports on a regular basis, so it is a good idea to set up a time once a year when you are missing out on gains. This will allow you to see if there are any errors that you are missing and the credit reporting agencies are to report. Your credit report and credit score allow you to have a lot more credit insurance in life, so make sure you take advantage of what they have to offer.
If you choose to monitor the credit agencies and credit scores on a monthly basis is advisable. If you choose to monitor your credit on a weekly basis, you can monitor the credit agencies throughout the week instead of once a week, but it is still not as convenient for those that are busy.
It should be noted that if anyone tries to fraud you. There are certain laws that regulate the credit industry, and to decrease the amount of fraud occurring; the fake credit businesses are being treated as if they are nonprofit, which will help to weed out people looking to take your money unprepared.