Credit report errors can do a lot more than drag your credit score down. If information on one or more of your credit reports happens to be negative, your credit scores can decrease and you can suffer from the change in numerous ways.
Besides the fact that a lower credit score can mean not being approved for credit, it can also mean getting stuck with higher interest rates on credit you are approved for. What’s more, a lower credit score could cause you to have trouble renting a new home, and it could impact how much you pay for insurance. As if all that weren’t bad enough, inaccuracies on your credit report can also impact your employment prospects. Employers are allowed to see a limited view of your credit reports if you give them permission (though they generally do not see your credit scores). If any errors on your report are negative, they could be getting an inaccurate and unfair view of you.
It’s important to dispute any errors you find on your credit reports immediately, and not just for the reasons already mentioned. An error on one or more of your credit reports, if it’s an error showing accounts you didn’t authorize, could be a red flag that your identity has been stolen. The sooner you dispute the error, the sooner you can get to the bottom of what might have caused it and get the credit scores you deserve.
Read here if you want to learn more about how credit report mistakes can impact your life, and what you can do about them.