The importance of spotting credit reporting errors

Credit reporting errors may happen to consumers who pay their balances in time each month and to individuals who struggle to make payments at the end of each billing cycle.

Questionable and problematic items come in all shapes and sizes, which is why it's important for consumers to check their credit reports regularly. Consumers who fail to take this precaution run the risk of suffering bad credit unnecessarily.

Jim Wang from personal finance blog Bargaineering recently discussed a few common credit reporting errors individuals may want to look out for.

In some cases, individuals may find accounts listed in their credit files, which they never opened, he said. While finding an erroneous account may be a sign of fraud, it may also be a reporting error from a credit company.

Consumers should also look out for any inaccurate information regarding one of their accounts, such as an unfair missed payment or a delinquent mark. Individuals may benefit from double checking their payment history to make sure all the details line up correctly.

These types of reporting errors may cause a consumer to miss out on a job opportunity, get denied a loan or lose out on an apartment. However, individuals can dispute any unfair or problematic items on their credit report, and working with a credit repair company may help with that process.