How to Quickly Spot Incorrect Credit Reporting and Identity Theft

Your creditworthiness is directly tied to your credit score, which is based on your financial history of loan applications, credit card and mortgage management, repayment history, and credit usage. If you are financially responsible, chances are you have a good credit score. There are many advantages to a high credit score, such as better chances of securing loans at lower interest rates, feasible insurance premiums, status of a low-risk borrower, and a possible boost for job and tenant applications.

You can check your credit score at major credit bureaus like TransUnion or Experian. Each credit report will show you any active and closed loan accounts with their repayment history along with any credit enquiries you might have made in the past. Since every entry in your credit report can make a difference, it is important to ensure that they are always correct. After all, 90 percent of lenders check credit scores for applicant risk assessment before delving into other relevant financial details.

In addition, loan applications usually lead to a 'hard pull' where lenders fetch your credit profile from the credit bureau. This could also reflect in your credit report. So, if you have applied for loans multiple times within a short span of time and gotten rejected, it could reflect poorly on your future loan applications. These entries could even last on your credit report for years.

Because of this, it would be vital to check your credit score and report frequently so you can make any necessary improvements. By doing so, you could also significantly reduce the chances of incorrect entries and identity theft.

Identity Theft Cases Were on the Rise in 2020

While the world leaped towards technology-driven digital platforms for all kinds of financial services in 2020, identity theft also rose by many folds. A recent consumer report stated that while incorrect entries are quite common, loan accounts that you cannot identify or changes made to your personal information could indicate identity theft. The Federal Trade Commission actually stated that it received 1.4 million complaints of identity theft in 2020, nearly double of the complaints in the preceding year. Reportedly, over 400,000 of these identity theft complaints referred to the misuse of government documents, such as Social Security Numbers, birthdates, and driver's license numbers.

If you notice any suspicious entries on your credit report, make sure to place a credit alert on your credit profile by contacting each of the bureaus. Then, contact the credit bureau and the concerned lender to cross-check the facts. In case you receive confirmation that it isn't an incorrect entry, lodge a complaint at the police station with the prerequisite documents and information to prevent further damage to your credit score and future financial aspirations.

This Fintech Offers Holistic Support to Your Credit Profile

With several established credit monitoring services in existence, Credit Sesame has been helping over 15 million people since its inception in 2010 to check their credit report from TransUnion for free, offer free identity theft protection, and assist in raising disputes regarding incorrect entries.

Credit Sesame initiates a soft pull to get your TransUnion credit profile each month so your credit score doesn't get affected in any way. You can then check your credit report which highlights your loan accounts, credit utilization, and inquiries. After that, you can come up with a credit improvement plan to improve your credit score if you want to.

Moreover, you can use Credit Sesame's identity feature service for free to get notified of any new loan accounts or enquiries, changes in personal credentials, and late payment entries from existing creditors. Since anyone can be a victim of identity theft, becoming aware of these cases early and taking the necessary action could make all the difference.

Check your credit score for free on Credit Sesame today.