Not alerting current or potential creditors if you've moved or changed names. Suppose you move and don't notify your existing creditors. If your monthly credit card statement and other bills don't reach you at your new address, you may miss a payment or two, and that tardiness can be reported on your credit report (not to mention the penalties or interest charges from your card issuer). Or, if you change names because of a marriage or divorce, and you apply for a loan without informing the potential creditor about your previous name, the credit bureau's report may show only your recent financial record under your current name. "If you don't inform your creditors of your name change, your credit record may not reflect your previous hard work at maintaining a good credit history," says Kincaid.
Kincaid also says that if your name or address doesn't match what's being reported by the credit bureau or other creditors, "this can prompt a red flag about a potential fraudulent account, and if nothing else, it can slow down your loan application."
Solution: Call each of your creditors to notify them of a name or address change, and keep a record of who you spoke to and when. Also, follow up with a letter to the appropriate department and mailing address. Some creditors may require specific documentation, such as a marriage license or divorce decree, in cases of a name change. "But even if the creditor doesn't require written notification," Kincaid says, "it may be in your best interest to provide it in writing to protect your rights and document that you made timely notification."
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Not alerting current or potential creditors if you've moved or changed names. Suppose you move and don't notify your existing creditors. If your monthly credit card statement and other bills don't reach you at your new address, you may miss a payment or two, and that tardiness can be reported on your credit report (not to mention the penalties or interest charges from your card issuer). Or, if you change names because of a marriage or divorce, and you apply for a loan without informing the potential creditor about your previous name, the credit bureau's report may show only your recent financial record under your current name. "If you don't inform your creditors of your name change, your credit record may not reflect your previous hard work at maintaining a good credit history," says Kincaid.
Kincaid also says that if your name or address doesn't match what's being reported by the credit bureau or other creditors, "this can prompt a red flag about a potential fraudulent account, and if nothing else, it can slow down your loan application."
Solution: Call each of your creditors to notify them of a name or address change, and keep a record of who you spoke to and when. Also, follow up with a letter to the appropriate department and mailing address. Some creditors may require specific documentation, such as a marriage license or divorce decree, in cases of a name change. "But even if the creditor doesn't require written notification," Kincaid says, "it may be in your best interest to provide it in writing to protect your rights and document that you made timely notification."