How to deal with mistakes in your credit report

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Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

Author: External 3rd Party

Mistakes in credit report are common and unavoidable sometimes. Forms get incorrectly filled by the people, databases get mixed together, and human error is not 100% avoidable and does happen every now and then.

 

Your credit report is yours and must show the information related to you. So in case it displays something irrelevant or unknown to you, then you must act immediately to get it fixed.

In case you are going to dispute the information that is given in your record and is incorrect, you must first find the person who owns that information. For example, in case it is about utility bills related to a house which you are no more living in, you should get in touch with the utility company for clarification of the same.

The way to approach them is in your hand. But remember that at most of the places, angry demands are not welcome and polite requests get the work done, though angry demands sometimes get the work done faster. You must contact the respective company in writing and also use the phone medium.

Taking the example of utility bills again, you must clearly explain about the details when you moved from the respective address and the steps that you took to make sure you settled all the bills before leaving. In case it is your mistake and you do acknowledge it, you can offer them to settle the bills if they remove the debt from your credit report. If you are not involved in the matter, then you can straightaway request them to remove the debt from your record as it is for the wrong person.

If you come across any such mistakes in credit report, you can follow the below given steps.

1.     Find out who the owner of the debt is, that is the company or organisation that has entered the report on your credit file.

2.     Get in touch with the company and explain the whole matter to them how the mistake has been made. Request the company to rectify the error on your credit report as quickly as possible.

3.     In the meantime, just add a little notice of correction in your credit report, which will state that the specified information is incorrect as it is a mistake and that it is being solved.

4.     In case the involved company does not respond in a couple of weeks, follow the step 2 again, more firmly this time.

5.     In case it is sorted, then well and good. If the matter still remains unsolved, then get in touch with the credit referance agency and raise a dispute with them directly.

Mistakes in credit report can usually be correct quickly. However, if it does result into a dispute, you must contact the Citizens Advice for further help.

Please note that even if the respective company promptly responds to your request and agrees for removing the mistake from your credit record, it can take some time to show up actually on your credit record. It can take up to a month or a bit more in many cases, because that is the period when most of the banks and lenders run the monthly credit checks.

Financial Mismanagement

If mistakes in credit report are left uncorrected, they can lead to you not getting loans from anywhere, not even the payday lenders. This can show how irresponsible you are financially and can be another major turnoff for some lenders. Because nobody likes a borrower who rants about how his credit report has an error but he actually did not take any effort to resolve the issue. You must also take your mistakes seriously and must check your credit report from time to time, more so if you are getting rejected too often without any reason you might be aware of.

It may also be possible that what you think is an error might actually be a mistake due to your own negligence. It can be caused by overlooking certain bills and forgetting about them, thinking later that you have paid them already. It can cause you to be in a very financially vulnerable position. So make sure you are aware of all your financial activities.

Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

 

Author: Internal Marketing Department

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