What To Do When There Is An Error On Your Credit Report

What is a credit bureau?

A credit bureau is an agency that gathers together information relating to credit, character and responsibility, then summarizes the data into a credit report and supplies it to creditors for a fee.

The 2 major credit bureaus in Canada are Equifax and Trans Union. The major lenders such as banks and credit card companies send a report about their borrowers to these credit bureaus. HOWEVER, this data isn’t always perfect because it’s provided by humans and humans can make mistakes so it’s important that you obtain a copy of your credit report on a yearly basis to confirm that all information is accurate.

What can happen if my information on my credit report is inaccurate?

The information provided on a credit report is your personal and financial information such as Social Insurance Number, where your work and live, if you’ve filed for bankruptcy and how you pay your bills. Anytime you apply for a credit card, a mortgage or any type of loan, the lenders determine whether you’re a high risk borrower through your credit report so if your information is not complete or incorrect then you could be turned down or paying more in interest.

What should I look for on my credit report?

You’ll want to look for any inaccuracies. Confirm all your personal information is correct. Make sure that if there are any liens, judgements or bankruptcies that they are all complete and correct. Go through your account history and confirm that all credit limits, balances and payment history are accurate. Check for any unfamiliar account activity as sometimes information could be entered incorrectly due to similar names or fraudulent activity.

What to do when I find an error on my credit report?

If you suspect that there is fraudulent activity then you should contact the credit bureau immediately so that they can flag your account. You should then contact your creditors and advise them so that your accounts are all protected.

If you find inaccurate information, then you have every right to dispute it at no cost to you. You can do this by contacting the credit bureau and advising them. You may want to follow this with a letter sent by registered mail with the information that is incorrect highlighted with any proof that you may have to back up the information. The credit bureau will contact your creditors to confirm all the information but you can always contact the creditor yourself and inquire and get them to send the accurate information to the credit bureau.

Once any dispute is resolved, don’t forget to get a new free copy of your updated credit report and remember to monitor your credit to make sure that everything remains accurate.

For more information and valuable tips, visit http://www.prudentcreditrepair.ca/