The Federal Trade Commission has found that one in five consumers has an error on at least one of their three credit reports — and one in twenty has an error serious enough to result in a higher interest rate or denied credit application. Knowing what to look for is the first step to protecting your credit score.
Error 1: Accounts That Don't Belong to You
This is the most common and most damaging type of error. It can occur due to identity theft, a mixed credit file (where another person's information was merged with yours), or simple data entry mistakes. Look for any account with an employer, address, or state you've never been associated with.
How to fix it: Dispute the account with each bureau reporting it, attach an identity theft report if applicable, and dispute directly with the creditor under FCRA § 623. Request that your file be separated if a mixed file is suspected.
Error 2: Incorrect Payment Status or History
An on-time payment showing as late, a settled account showing as delinquent, or an account in good standing showing as a charge-off — these errors directly crush your payment history, which is the most heavily weighted factor in your score.
How to fix it: Gather bank statements, payment confirmations, or settlement letters. Dispute with the bureau and attach documentation. The creditor must verify the exact payment date and status — not just the existence of the account.
Error 3: Duplicate Accounts
After a debt is sold from one collector to another, both the original creditor's entry and the new collection account may appear simultaneously — effectively penalizing you twice for the same debt. This is a violation of the FCRA's accuracy requirements.
How to fix it: Identify the original debt and all accounts related to it. Dispute any duplicate entries, noting that they represent the same underlying debt. Both bureaus and furnishers are obligated to correct this. See the full guide on removing duplicate accounts from your credit report.
Error 4: Wrong Balances or Credit Limits
An inflated balance or an understated credit limit both artificially increase your credit utilization ratio, which can significantly lower your score. These errors are common after account closures, payoffs, or transfers.
How to fix it: Dispute with the bureau, attaching your most recent account statement showing the correct balance or limit. This is usually resolved quickly once documentation is provided.
Error 5: Outdated Negative Information
Negative items have legal maximum reporting periods under FCRA § 605. Most negatives (collections, charge-offs, late payments) must be removed after 7 years from the date of first delinquency. If an item is past its reporting window but still on your report, dispute it for exceeding the FCRA's maximum reporting period.
How to fix it: Calculate the date of first delinquency and compare it to today. If more than 7 years have passed, file a dispute citing FCRA § 605 and state that the item has exceeded its legally permitted reporting period. The FCRA's rules on how long negative items stay on your credit report breaks down each category in detail.