Maintaining a healthy credit score and safeguarding your employment history are crucial for financial well-being. This guide provides actionable steps to identify and rectify common credit report errors and protect your sensitive employment data from unauthorized access.

Securing Your Credit Report

Start by obtaining your free annual credit reports from TransUnion, Experian, and Equifax. Requesting online through www.AnnualCreditReport.com is the quickest method. Don't forget to also check Innovis, the fourth credit bureau.

Once you have your reports, meticulously review them for inaccuracies. Common errors include:

• Inaccuracies: Misspelled names, incorrect addresses, or inaccurate birthdates can negatively impact your credit. These seemingly small errors can potentially mix your credit file with someone else's.
• Unfamiliar Accounts: Be vigilant for accounts you don't recognize, such as credit cards or loans you never applied for. This could be a sign of identity theft.
• Duplicate Entries: The same debt appearing multiple times, such as duplicate collection accounts or paid-off debts still listed, requires immediate attention.
• Data Discrepancies: Incorrectly reported late payments, inaccurate credit limits, or errors in payment history can significantly affect your creditworthiness.
• Outdated Information: Bankruptcies older than ten years, late payments older than seven, and outdated collections should not remain on your report.

Close up of a man with a smartphone and laptop computer on January 31, 2019.  (Neil Godwin/Future via Getty Images)

If you identify any discrepancies, promptly dispute them with the respective credit bureau. Provide clear written explanations of the errors, supporting documentation, and your contact information.

Close-up of the upper corner of a consumer credit report from the credit bureau Equifax, with text reading Credit File and Personal Identification, on a light wooden surface, September 11, 2017.  (Smith Collection/Gado/Getty Images)

Protecting Your Employment Data

Equifax's "The Work Number" database contains employment and income records. Employers utilize this database for verification purposes, but it also means your salary history is accessible. Consider freezing your Employment Data Report (EDR) to prevent unauthorized access and potential salary undercutting during job negotiations.

To freeze your EDR, create an account with The Work Number, verify your information, and initiate a freeze request. You will receive a confirmation letter with a PIN, which is essential for unfreezing your report in the future. Store this PIN securely.

A credit card is pictured alongside a restaurant bill. (iStock)

Freezing your credit and employment data provides an added layer of security against potential misuse. Taking these proactive steps empowers you to control your financial information and safeguard your future.