How Credit Errors and Identity Theft Can Affect Your Credit Score

A good financial history is tremendously important and can impact your life in numerous ways. Your credit score has a particularly hefty role in your everyday life. It dictates housing opportunities, whether you are allowed to have a credit card, what type of car you can buy, and many other aspects of your life. 

Victims of scams and fraudulent behavior find that their lives can be impacted for years to come. If you or a loved one has had their identity stolen or are dealing with credit errors, gaining knowledge about the differences will inform you when determining how to proceed. 

Identify Theft: What You Need to Know

Commonly, identity theft occurs and wreaks havoc on an unsuspecting party’s credit report. Someone steals their personal information and uses it to open credit cards and take out loans. They make purchases and commit fraud that harms the victim in the future, though it is unknown to them as it occurs. 

When data breaches for online companies occur, often through hacking of their databases, these criminals steal data from various accounts. It may also happen when the victim uses an unsecured browser or is subjected to phishing scams or even physical information that is stolen, like social security cards or cell phones.

By obtaining your social security number, your birthdate, and your credit card information, a thief can have their way with your identity. It is unlikely that you will realize what has happened until you apply for credit and find that your credit history has been demolished by the thief. The thief can make large purchases using a credit card they opened in your name, and since you do not know they exist, the missed payments are negatively impacting your credit score.

The Difference Between Identity Theft and Credit Errors

Credit errors may not be quite as serious as identity theft, but you should still have them corrected as soon as you notice them. In most cases, this is a simple fix, and it is within your rights to do so. 

Credit Errors

Some common credit errors that can cause trouble if you do not realize they need to be corrected are listed below: 

• Misspelled names
• Incorrect social security number listed
• Accounts that do not belong to you or that you closed included
• Incorrect reporting information, such as missed payments that were actually made

If you can prove these errors were made, they should be fairly simple to rectify. Periodically, it is important to pull your own credit record and review it closely. If there is you find a mistake, contact the credit bureau to report the error. 

Pay close attention in the months to come. If you see more credit errors, you may want to have your accounts frozen and report the activity to the credit bureau as well before your credit card is affected too seriously. 

Hire a Lawyer to Help You to Overcome the Difficulties of a Stolen Identity or Credit Reporting Errors

If you have been the victim of identity theft, or if your credit score has been negatively impacted by errors, it is recommended that you contact a Florida credit report error attorney at Sharmin & Sharmin Attorneys at Law for help navigating such a challenging issue. Call today for a free consultation.