San Diego Financial Attorneys Giving You the Representation You Need for Credit Report Inaccuracies

Credit reports are a key part of modern life. They are used to determine if and when we can buy or lease cars or houses, rent apartments, or get certain types of loans. They may also impact the interest rate we receive on certain loans. A good credit score can be the key to living the happy and successful life everyone dreams of. However, a negative credit score can seriously impact our quality of life by restricting where we live, what car we drive, and how deeply indebted we become.

Despite our best efforts, sometimes inaccurate information ends up on credit reports. Often, this can be due to a simple error. Other times, it could be due to a debt collector reporting false information or the result of identity theft. This is why it’s important for everyone to closely monitor their credit reports and act quickly if you notice any inaccuracies.

How Are Credit Scores Determined in California?

Credit scores are determined by compiling data from three different agencies. These agencies are:

• Equifax
• Experian
• Transunion

Each agency monitors activity such as how many open credit card accounts you have, the amount of your debt, how long you’ve been in debt, and other financial activity. The agencies also take into account other factors such as your renter’s history, student loan debt, and more. All of this information is compiled into a three-digit number called a credit score. This is the number landlords, bank officers, and others will use to determine your eligibility to rent or buy homes or apartments, get loans to pay for vehicles, and more. This is because the purpose of a credit score is to determine consumer reliability.

Consumer reliability is how financially responsible a given individual is. The belief is that a higher credit score corresponds to higher financial reliability. If you have a high credit score, you are considered more likely to pay back a loan in a timely manner. For landlords and rental agencies, it means you are considered more likely to care for the property and leave or return it in an undamaged state.

What Are Considered Good and Bad Credit Scores in California?

Credit scores are tabulated using software called FICO, standing for Fair Isaac Corporation, the company that developed it. Your FICO score can run between 300-850. A credit score of 700 or greater is considered good.

Most people with scores of 700 and higher will have little to no difficulty obtaining loans, opening new accounts, or being able to sign leases. A score of 620 or under is generally considered poor. People with scores under 620 will generally struggle to open new accounts and may have difficulty finding a place to live. If they are able to obtain terms on leases or rentals, they may have to put up more money as collateral or be subject to more severe penalties in the event of a default.

What Steps do I Take if I Notice Inaccuracies in my Credit Report?

No matter how responsible you are, it’s possible for inaccurate information to end up on your credit report. No matter the reason, inaccurate information can be highly damaging to you. If it lowers your credit score it could potentially impact your ability to buy a home or obtain a vehicle.

There is a process for correcting inaccurate information in your credit report. First, you must contact the agency (either Experian, Equifax, or TransUnion) to formally dispute the information. It is important to give them as much information as possible including a summary of what information is inaccurate, why the information is inaccurate, and if possible provide evidence that shows what you are claiming is true. The agency then has thirty days to investigate. If the agency decides the information is inaccurate, they will correct or remove it. However, the agency may determine they found the information to be true.

Although credit agencies are supposed to perform these investigations quickly and diligently, they will often err on the side of the negative information. This is because businesses tend to trust other businesses more than individuals. Many people with negative credit may also claim they are being impacted by information that is actually true. This can make it difficult to have false or misleading information removed from your credit report.

If the agency chooses not to remove the information from your report, you will have to escalate the case. You have the right to file a lawsuit against the credit bureaus and against the company that is reporting the wrong information.

If you believe someone has stolen your identity and is using it in a way that harms your credit score, you must involve the Federal Trade Commission. Identity theft is considered a serious crime, and complicates how you can go about correcting and protecting your credit score.

What Should I Do if I Find Inaccuracies in my Credit Report?

While you have the right for the information in your credit report to be accurate, it can be a long and time-consuming process to correct errors. In the meantime, your credit score will remain impacted.

If you or a loved one have found inaccurate information in your credit report, don’t hesitate to contact the attorneys at Khosroabadi & Hill, APC. We’re located at 3550 Camino Del Rio N #303, San Diego, CA 92108, three miles South of Montgomery Gibbs Executive Airport and four miles West of Viejas Arena. Our attorneys are experienced in correcting credit inaccuracies, and can handle the stress of correcting them for you. We know how important it is for everyone’s credit score to reflect positively on them. We also know how easy it is for inaccurate information to impact someone’s score.

If you’re worried about inaccurate information in your credit report, contact the attorneys at Khosroabadi & Hill, APC at 858-240-2093 or email us for a free consultation. We care about each and every client’s financial future, and want to make sure they can live their best lives. We’ll make sure your credit score reflects the truth.