How Does Inaccurate Bad Credit Get on a Credit Report?

Written by Dana Neal

Inaccurate bad credit can get on your credit report report in a number of ways.

Faulty bad credit can get on your report in the following ways:

a service bureau can make a mistake;
the credit bureau’s unruly database and query system can cause a mistake;
a furnisher can provide wrong or outdated information; or
someone can steal your identity.

The remedies for each scenario are generally the same, although identity theft is a special case for which some additional countermeasures must be taken.

Sometimes you won’t even know how something ended up on your report until you do some investigating. New accounts under your SSN will often suggest identity theft, whereas correspondence with a bureau and a furnisher can indicate that a file merger has occurred. You may have items on your report that are outright false that can be settled very quickly. For instance, an item was paid on time but shows “paid late.” In many cases it’s just a mistake. (They do happen!)

Whatever the case, it's important that you get to the bottom of it quickly. If you suspect identity theft, take steps outlined in Identity Theft Recovery without delay. In all other cases, file a credit bureau dispute using techniques outlined in Crafting an Effective Credit Repair Letter.