Given the importance of a credit score, many assume they are always correct, but this isn’t always the case. Although instances of credit scores being incorrect are rare, it does happen. As such, those in doubt about their credit score should check to ensure that credit reference agencies can correct any incorrect information.
Mistakes That Can Occur Regarding Credit Scores
The reasons why a mistake is present on a credit file could be due to more than one reason. In some instances, there could be administrative errors. However, there could be times when similar names and addresses need to be clarified, meaning that a person’s credit score is not a true reflection of their financial status.
If there are entries you don’t recognise when checking a credit file, then fraudulent credit applications could have been made using your name and address. Although this can be concerning, you can take some steps to ensure that you can update this information as soon as possible.
Notify the Relevant Credit Reference Agency
If you find incorrect information on one credit report, it can be worthwhile to check other credit reference agencies to ensure there is no inaccurate information recorded on those. You should then notify the relevant credit reference agencies and advise them of the fraudulent activity.
If you can identify the lenders, you should also contact them to make them aware of the fraudulent entries.
Report the Fraud to The Police
The police should be contacted as soon as possible, as it ensures the fraud is documented. After filing a police report, it is advisable to notify the Federal Trade Commission, which will complete an identity theft report.
Verify Your Documents Online
If a credit score is lower because of fraudulent activity, verifying your documents online can be a good idea. There may be instances when fake documents have been forwarded to lenders. Using online documentation verification ensures that you show lenders you are who you say you are, allowing incorrect information to be corrected efficiently.
Some people may be worried that verifying documents online is time-consuming, but it can take as little as 30 seconds to prove a document is genuine. Furthermore, you will be given a certificate recognised as legitimate, making credit file corrections easier.
Steps to Reduce Online Fraud
As registering for websites is so common, many may think there is no risk when filling out forms online. Although most websites conform to regulations regarding protecting private data, there will be some nefarious websites with sinister intentions.
If you’re browsing a website that is news or does not offer any form of security, it is advisable to look elsewhere for what you need. Reading online reviews is another fantastic way of telling genuine companies from fraudulent online users.
The prospect of fraud can be a worrying one, but as long as you’re actively checking your credit record and are aware of the risks online, staying safe while browsing the Internet will not be an issue.