Should I bother Fixing a minor mistake on my credit report?

[Salfredo]

Does a minor mistake on my credit report (such as listing the wrong type of credit) warrant a dispute letter? Would it be worth the effort? How can a mistake like this hurt my credit?

[Japhet11]

Hi Salfredo,

Though it may not seem like a mistake that will affect your credit score, it very well might. You want your credit reports to be 100% accurate if possible. You were a little vague on what's being listed inaccurately, but just to give you an idea of how it can hurt:

1) Credit scores can go up or down depending on how many open, active accounts you have. Having more (or less) lines of revolving credit than what is considered optimal - usually 3 to 5 cards - and you could be lowering your score with that one little error.

2) Part of your score is based on your debt to limit ratio, which is the total of all of your credit card balances divided by the total of all of those limits. Now, having one of those cards listed as something else can completely throw that ratio off. It could change your score drastically.

3) If it's listed incorrectly it might not be helping your credit score at all. If it's listed as anything other than it should be, there's a good chance that while you may be responsible with that card, none of it will actually register with the credit bureau.

If you're worried enough to post a question on our forums, then it has to be bothering you a little bit. If you're trying to improve credit so you can buy a home or a car, then my advice would be to definitely send the dispute. The amount you could save in interest rates in the long run will be worth the cost of the stamp.

Let me know how it goes. If I knew what kind of accounts we're talking about, I'd probably be able to tell you with a hundred percent certainty how it's affecting your scores. Of course if there's more than just that one errors on your reports, visit us at MyCreditGroup.com for a free consultation. Best of luck!