When you wish to purchase something through a loan your credit report may affect your ability to do so. You may have trouble trying to obtain a mortgage, bank loan, credit card or even home necessities such as an Internet provider, home telephone or cell phone contract.
There are three national credit-reporting agencies that hold credit information about you. These have information of your spending habits and also your ability and willingness to repay as well as how much you still have outstanding. They are Experian, Equifax and TransUnion. People who you will go to obtain credit may use one or more of such agencies to gain information about you and this will determine as to whether they are willing to allow you credit according to the results. Other reasons for the balance being different than expected could be down to credit card fraud. If this is suspected you immediately need to contact your creditor as well as the credit reporting agencies to let them know. As we are all human it can sometimes be that an inputting error has occurred. Ensure you keep receipts and statements of all transactions so that this matter can be dealt with as soon as possible.
Your credit report is updated depending on your creditors; it is usually updated each month, on different days depending on the agency, yet it can happen as infrequently as every 90 days or quarterly, this is the reason why you can have paid off creditor yet it does not show on your credit report balance immediately. As the three credit agencies do not communicate you will find that the scores can differ between them. The information on your credit report will differ depending on how late you are to send a payment, some will choose not to at all. Depending on the creditors policy, it can be 30 days or more late before they decide to report it.
If you read your balance and it does not add up you need to get proof of payments that seem outstanding on the report and send them by letter to the credit report agency/agencies then wait for 90 days for the balance to be updated. If you know you have outstanding balances but wish to improve the balance on your credit report you can pay off what you owe then as with balances that have not yet been updated you can send proof of the payments and remaining balance, if any on the account by letter, this will then be updated within 90 days also.