Why a Credit Report Error Could Be More Than Just a Mistake

Don't ignore a mistake on your credit report -- even a seemingly minor one.

Checking your credit report is something you should aim to do every few months. In fact, this year, credit reports are free for consumers on a weekly basis, so it pays to take advantage of that opportunity and access yours as needed.

Now in the course of reviewing your credit report, you might come across information that doesn't look right. And if you find an error, you'll be in good company. A Federal Trade Commission study conducted years back found that a good 25% of consumers identified errors on their credit reports. That's not a small percentage.

In some cases, a credit report error is just that -- an error. And often, reaching out to the credit bureau behind the report in question will lead to a fairly swift resolution.

But in some cases, the information you see on your credit report that doesn't look right may not be an innocent mistake. Rather, it may be a warning that you've fallen victim to financial fraud.

When a mistake is really a major problem

Criminals have gotten savvier when it comes to accessing consumer data and stealing their identities. So in the course of checking your credit report, you may come across an open credit card account or line of credit you're convinced you never opened.

In some cases, that could be a mistake. Maybe someone with a very similar Social Security number to yours opened that account, and a credit bureau accidentally associated it with your Social Security number. That's certainly possible.

But what may have really happened is that a criminal got a hold of your personal financial information, used it to open a credit card or line of credit in your name, and is now in the process of racking up charges on your dime. That's certainly a situation you'll want to get ahead of -- and put a stop to.

And that's why it's so important to not only review your credit report on a regular basis, but also, pay attention to any details that seem off. In this situation, what you'd want to do is start by contacting the credit bureau in question to investigate.

You should also contact the issuing credit card company or financial institution and see what they say happened. If the credit card company or financial institution at hand confirms that you're looking at an error, you can follow up with the credit bureau itself. But if the credit card company or financial institution sees an account in your name using your Social Security number, you'll need to work with them to rectify the problem.

Pay close attention to the details

Reading your credit report may not be the most fun way to spend an evening, but it's an important step to take every few months. And even a lengthy credit report shouldn't take more than a few minutes to review.

In some cases, a credit report mistake may be a simple error the associated bureau can correct. But it's always good to investigate and follow up.