You have a stellar credit history and have always had a high credit score, but something is wrong. Maybe you had a credit card, or new car loan application rejected. That led you to take a look at your credit reports, and you found entries that don’t belong to you. These errors have affected your credit score, but you had no idea of the ripple effect they would have on other areas of your life. You can—and must—correct your credit reports, but it can be a stressful and difficult process. To understand how important it is that you persist in fixing your credit reports, we share some of the lesser-known ways a poor credit score can affect your life. Then we tell you how to change that!
Unexpected Effects of a Credit Report Error
Considering how many businesses make important decisions about you based on your credit report, you would think the credit reporting agencies and information furnishers would be extra-careful about ensuring the accuracy of anything they put on your report. Ha! Not only is there no real attempt made to protect you from false information, but it can be very hard to convince them when something should be removed. You may be aware that a bad credit score—no matter what the cause—can affect your ability to get a loan or a credit card, but if you normally have good credit, you probably don’t know about these other possible effects:
Security deposits required on utilities.
If a power company, cable provider, or internet service doesn’t like the look of your credit report, they could require you to pay a deposit up front before you can get service. Your past history paying bills on time may not even matter to them. If your credit score is low because of identity theft or a reporting mistake, getting basic utilities could be difficult.
Denied cell phone contract.
People with poor credit often have to settle for prepaid phones or month-to-month contracts. If your credit score suddenly tanks, you could lose your cell phone contract or be denied a new contract if you try to change providers.
Can’t rent an apartment.
Landlords check credit reports to make sure their tenants will pay their rent reliably. If you are moving into a new rental and a landlord sees that you have debt in collections or unpaid credit cards, you could be rejected.
Insurance premiums go up.
See a sudden spike in your car, renter’s, or homeowner’s insurance premiums? Check your credit report. People with bad credit are considered risky investments for insurers, so they have to pay more in premiums.
While you have to grant permission for an employer to pull your credit report, you probably won’t think twice about signing off on it if you think your credit is in good shape. Employers can reject new applicants or deny a promotion or a raise based on a poor credit report.
People with low credit scores deal with these problems every day, but if you have always had a stable income, made loan payments on time, and paid off credit cards, you may have no idea that these things can happen. Creditors and service providers don’t care that your credit report problems were caused by identity theft or a reporting mistake. You will have to go to the source to fix the report before you can convince them to work with you. Fortunately, these businesses have to tell you about the issues on your credit report, so you have an opportunity to make it right.
Don’t Waste Any More Time Trying to Fix a Credit Reporting Error
You’re already feeling the serious effects of a credit report error, and you need to fix it fast. You can go through the credit report dispute process yourself, but you can also leave it to us to draft dispute letters, send them to everyone who needs to get one, and follow up as required until the problem is solved. Fill out our contact form and tell us what’s going on. We will get back to you ASAP.