Why is My Credit Card Balance Wrong on My Credit Report?

Posted by Declan Disney | Posted in Bad Credits | Posted on 21-01-2012

When you get a copy of your credit report, it is a snapshot of your balance at the time the report is printed. Your balance will fluctuate all through the month, based on charges, payments, and interest compounded. In fact, the difference may be simply because the credit card company has not reported the latest change to the credit bureaus.

Give it a Month

For instance, if you just made a big payment, and paid off your credit card, it may take a month for it to show up on your credit report.

Mistakes

However, there can also be mistakes. If you have had a credit card that shows a sudden increase in balance, first of all, call the credit card company or go online to make sure your number has not been stolen. They will have procedures in place to protect your balance. Make it clear that you need your credit report corrected ASAP.

If the credit card company does not take care of the problem immediately, you can file a credit report dispute. By following the steps included in the dispute, you can have your credit report straightened out.

Credit Repair Companies

Often, people will hire a credit repair company in these situations. These companies do this full time, and for a minimum fee they’ll contest any questionable entry on your credit report. You will have to authorize the credit repair company to work on your behalf. They can then contact each of your creditors and challenge questionable entries on your credit report. Credit card companies and other creditors are required, by law, to produce proof of their statements about your credit. If there has been an incorrect balance entered on your credit report, the repair company will require proof of your charge, which can then be disputed on your behalf.

Verifications

Any element of your credit report that cannot be verified by the creditor must be removed. You can dispute these entries yourself, but it often takes several dispute letters and phone calls, with all of the run-around you get with calling big organizations. A credit repair company is familiar with the process, and know how to expedite the process. The fact is, most creditors know they can’t prove their assertions against you, and so, must withdraw the evaluation. Even when they can prove it, they don’t want to waste the time digging up the proof, and so will withdraw the evaluation.

So, in general, an incorrect credit card balance on your credit report will reflect plus or minus about one month’s payment and associated interest, and that’s about all. It’s also pretty typical. If also may not reflect your most recent purchase with the card. If, however, the difference is greater or less than it should be, based on your payments and charges, contact the credit card company and the credit reporting agency immediately. There could be fraud involved, or hijinx on the part of the credit card company.



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