You Need to Check Your Credit Reports for Errors Frequently

Whether you have $100 or $10,000 in credit card debt, there is a chance you have an error on your credit report.

In fact, a recent study by the Federal Trade Commission found that one in four consumers have errors on their credit reports that could hurt their credit scores.

“These are eye-opening numbers for American consumers,” said Howard Shelanski, director of the FTC’s Bureau of Economics. “If they don’t [check their credit score], they are potentially putting their pocketbooks at risk.”

One of the most common errors on a credit report is information that isn’t yours, such as names and addresses, according to Nolo.com. Other harmful information that could be on your report includes outdated data, incorrect payment statuses and wrong notations for closed accounts.

With errors on your credit report you may find it more difficult to qualify for a credit card or a home loan, so you should be sure to check these documents frequently.

You are entitled to one free copy of your credit report from each of the three major bureaus so be sure to take advantage of this benefit.