You pay your bills promptly, keep credit cards in check and apply for new credit when you actually need it. There is every reason in the world you should have a solid credit rating. And so far the reasons you take notice of “check your credit” regularly is that there are some ways where things can go wrong, even if you have got all of your spending customs in order. Below are three ways you can have bad credit rating without even realizing it.

  1. You Have Got Errors on Your Credit Report

This occurs more frequently than you can imagine — in fact, a study conducted in 2012 performed by the Federal Trade Commission discovered that 1-in-5 people in America had errors on their credit reports. Errors can take place every so often: documents get mixed, a debt gets re-aged, furnishers ruin or identity theft takes place.

Some mistakes, such as a misspelled details or inaccurate address, will not affect your rating. However the collection account remains on your credit report past the date it’s supposed to go down, can do a little damage. And various mistakes of that type can add up. This is the reason why it is essential to keep an eye on your credit frequently for glitches, and in case you find any, to dispute them with the credit bureau in question.

  1. You Have Got Collection Accounts You Didn’t Know About

Collection accounts can clearly hurt your credit, and for the reason these accounts can be the outcome of a debt not related to a business loan, it’s absolutely possible to have one or two and not even understand it. At present, these collections accounts will be a mistake. Or they could be justifiable. That is the reason why if one seems on your credit report, it is important to confirm the debt. Contact information need to appear on your report, however if it does not, you can try searching for the debt collection company online.

  1. You Have Been the Victim of Identity Theft

Identity theft can do substantial damage to your credit. Consider it: If a crook gets hold of your SSN and starts taking out fake accounts in your name, overlooked payments, high balances and multiple inquiries may become visible on your credit report that can easily tank your score. In case you find out you’re a victim of identity theft, it’s critical to document the deception immediately to the right authorities, your lender and the credit bureaus.

Don’t Forget, there are some signs that your credit might be bad, such as unexpected denials on business loan, unexpected calls from debt collectors and emails of subprime credit card solicitations. It is important to keep a check on your credit so that you can mark any issues which can happen and takes some steps to manage them. You can get this by keeping a close eye on your credit report regularly.