60% of People Have Errors on Their Credit Report That Crush Their Credit Scores

| February 12, 2011 | 0 Comments
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It’s true and I was shocked the first time I heard that stat.  According to Lexington Law Firm, approximately 60% of people have incorrect information reporting to the credit bureaus that is negatively impacting their credit score.  Items such as late payments, collections and charge offs are oftentimes nothing more than a mistake no one bothers to fix.

How is this even possible?  Here is a very common example:

You visit a doctor and end up having a small balance left to pay that your insurance didn’t cover.  (We all know that happens, but the state of health insurance in the US is a topic for another blog.  Haha.)   So you receive a couple letters from the doctor’s office reminding you to pay off the balance.  You totally intend to pay it, it just doesn’t happen to be #1 on your to-do list.  So the Doctor’s billing service, after a couple letters are mailed, sells the debt to a collection agency.  This is standard practice in the health care business.  Around that time you call up the Doctor and pay the bill.  They shouldn’t accept the payment, since they already sold the debt, but they do.  This, too, is also common practice in the medical world.  Shortly after that, you receive a letter from the collection agency but you ignore it since you already paid the bill.  Makes sense, right?  So a couple more letters come and then they stop.  No big deal until the next time you see your credit report and guess what?  There is a collection reporting to credit for the measly $50 doctor bill that you paid months before!  And guess what else?  That one (incorrect) collection account will have a massive impact on your otherwise clean credit history.  I have personally seen one collection drop a credit score 100 points.  No joke.  And it wasn’t even your fault.  It’s a total shame and it happens every day.

Ok, so that’s the bad news.  Companies are reporting incorrect information to the credit bureaus and it’s bringing down your scores.

But before you look for the nearest ledge–  there is good news too:

These errors are easily fixed.  Incorrect information can be removed with one letter to right person.  The problem is getting the right letter to the right person at the right companies.  But don’t worry, you don’t need to learn how to do this.  I promise you, it’s not very fun stuff.  So that’s where Lexington Law comes in.  They are the right people who know the industry inside and out and their sixteen attorneys repair people’s credit every day.  You can’t stop the errors from happening, but you can have them fixed.  Good news, right?

-Chris, Credit Repair Life

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