Common Errors in Your Credit Report and How to Get Them Fixed

December 18th 2018 at 10:18am Published by sharpshooteradmin

Your business credit report is an indication of your business and how you are performing as an organization. Any errors in the credit report can significantly haunt you in the long run, as you look to think of ways to get small business funding.

If you have ever applied for funding before, you would know everything there is to know about how small business funding work. Once you submit an application, your credit report will be taken into perspective. The credit report would be used for deciding just how credit-worthy you are and whether the business should proceed working with you or not.

If your credit report has certain errors, most private funders and traditional banks would not move ahead with the funding agreement. Errors in the credit report are rather looked down upon by most investors and funders.

Here we look at some of the most common errors you could have in your credit report and what can be done to get them fixed.

Mix Up in Business Info

A mix up in business info is one of the most common credit report errors that businesses have. The mix up could be of any kind. The credit report could be showing accounts and repayment details belonging to some other account, or it just could be mixing up your credit score with another.

This is a serious error and should be corrected at the earliest. If the business you’re being mixed up with does not have a good credit rating or payment history, then it can damage your chances of getting funding. You should make sure to check your credit report time and again to see if there are any mix ups as such in the details.

Even if your credit score or report has grown positively because of the mix up, you should deal with it in a mature manner and should take preemptive action.

Identity Theft

Identity theft isn’t as common, but it is one error associated with credit reports. The info on your credit report is accessible to all, so anyone can fox the system to open an account on your name and use your info for their own gain. Such identity theft should be identified and rectified at the earliest.

Personal Info

A credit report can sometimes incorrectly record personal info such as your business address or your years in business. These should also be corrected immediately.

Fixing Errors

The procedure you should follow for fixing errors in your credit report is:

  • Check all the major credit bureaus to see if the error is repeated
  • Compile list of all incorrect info and file a dispute with that credit bureau
  • Submit a formal report and wait for the answer

If your observations are correct, your credit report would be amended soon and the error would be rectified.