Strange Address on Your Credit Report? Here’s What to Do

Your credit report is a critical component of your financial life since it demonstrates your level of creditworthiness to lenders, which can determine whether you achieve financial goals like buying a home or a car.

Unfortunately, your credit report can contain inaccurate personal information, including your identity and address. Any personal misinformation can be a red flag for serious issues such as identity theft. Discover how you can identify anomalies within your credit report and the actionable steps you can take to prevent fraud that can negatively impact your credit history.

What Does an Incorrect Address Mean?

An address that isn’t yours might appear on your report if you’ve cosigned a loan with another individual and the loan has their address on it. However, a cosigner’s address isn’t a cause for alarm, but a “weird” or unknown address that you have never lived at should get corrected as soon as possible.

Josh Richner, founder of the debt relief agency FaithWorks Financial, notes that human error can result in an inaccurate address showing up on your report. “Sometimes inaccurate information lands on a credit report due to a simple entry error by a lender or creditor,” Richner says. “There are usually lines of credit associated with the unknown address in cases of fraud, however.”

Additionally, someone who has used your name and Social Security number to apply for credit has committed identity theft. The individual might provide an address other than yours on a loan or credit application. In turn, the lender may submit the inaccurate information to the credit bureaus.

Also, some scam artists submit a change of address for you with the U.S. Postal Service to have your mail delivered to them. These fraudsters use information like your personal details to commit identity theft.

Consequences of an Incorrect Address

Your address cannot affect your credit score, at least not by itself. Your credit score comprises information from your credit report, including the:

• Number of late payments
• Number of credit accounts
• Length of your credit history
• Total amount of debt you have outstanding

“An address alone doesn’t influence your credit score, but it can still cause problems,” says Richner. “If the address on your report doesn’t match what’s on a loan or credit card application, a lender may pause or deny the application to investigate further.”

All this assumes that you’re not a victim of identity theft. However, take immediate, proactive steps if you cannot explain the address discrepancy.

What to Do If You Find Address Inconsistencies

Notify the credit reporting agency, informing them that you’re disputing the inaccurate address on your credit report. Inform them that you have never lived there and don’t know who currently lives at the address. You can dispute address inaccuracies online.

For example, Experian provides a portal where you can initiate disputes. If Experian determines that your dispute is accurate, Experian will remove the address from your report.

The Federal Trade Commission (FTC) suggests contacting the business or lender associated with the account with the erroneous address. It’s obligated to remove it from their records. The business must investigate and notify all three credit bureaus on your behalf if the information is indeed inaccurate. And, of course, you’ll want to immediately close the account that’s associated with the phantom address.

Combing through your credit report can ensure that nothing else is awry, such as late payments you know you didn’t make or accounts you don’t recognize.

“One of the best ways to protect yourself is by placing a freeze on your credit,” Richner says. “This prevents new credit from being opened in your name unless you temporarily lift it. It takes a little effort to manage, but the protection it provides is well worth it.”

You may also want to initiate a credit freeze, which prevents anyone from accessing your report without your permission. You can tag your credit report with a fraud alert as well, which requires creditors to impose added security measures to verify your identity for anyone who attempts to open an account, request a credit line increase, or apply for an additional credit card in your name.

The Bottom Line

Any discrepancy on your credit report can be a headache, even if it’s not a significant cause for alarm, such as in the case of identity theft. Keep a watchful, ongoing eye on your report even after you have resolved the issue. You can get free copies of your report regularly at AnnualCreditReport.com. Review your report from each of the three credit reporting agencies, as you might find information contained on one report that doesn’t appear on another.