How to Correct Errors on Your Credit Report
One thing we all should do, and many of us do not do, is to check our credit files periodically.
We should do this and also know our credit scores, as if the day comes we need to apply for a loan, we will be prepared as to if we will be approved or not, and also getting a good interest rate on a loan can depend on having a high/good credit score.
And credit scores are used for more than just issuing credit, they can be used in approving insurance policies, and also in getting some jobs.
So if by not checking your credit file you do not find an error or omission and do not correct it, it can cost you money, and possibly even more.
So why are we not checking our credit reports?
Are we afraid of what we may find there?
There are a few things we should know, and the first is, how to get a copy of your credit history.
Obtaining a Copy of Your Credit Report
To start the process of reviewing and if need be correcting your credit file, you need to start at the beginning, getting a copy of the credit report so you can review it.
There are a few web sites and companies out there offering to do this for free, and also help you review your credit score, once again for free.
Once you have a copy of your credit history, what are you looking for?
Mistakes, errors, and possibly omissions as well, of course.
You want to insure the basics are correct to begin with:
* Your name and how it is spelt.
* Your address and post code.
Any errors need to be noted for correction.
Then you need to check that your accounts are listed and are reported correctly:
* Your open accounts you are making payments on.
* Your closed accounts that have been paid.
Any errors or omissions need to be noted for correction.
Then you need to review any inquiries on your credit file, those that have looked at your credit history:
* Do you recognise them?
* Did you apply to them for credit?
Any errors or unknown inquiries need to be noted to be queried.
Correcting any Errors
There are two (2) ways to correct an error on your credit report:
* Contacting the credit bureau to investigate and make the correction.
* Contacting the creditor directly to have them make the correction.
As your credit file must be an accurate picture of how you pay your accounts, errors are taken seriously.
You may be required to provide documentation to prove your claim of an error.
The credit bureau contacts the creditor in question, and once the error has been located and deemed to be an error, the credit bureaus then corrects the error.
The same is true of omissions.
If a creditors omits something, or some detail is omitted on your credit file, this can be corrected as well.
In contacting a creditor directly, the same is true, you need to provide evidence of the error, and the creditor will correct it directly.
There are a few other notices or statements you yourself can make and have placed on your credit file.
Even you do correct a mistake on your credit file, and especially if you don’t and you feel the mistake warrants an explanation, you can make a statement or “notice of correction” on your credit report.
This is a statement from you of up to 200 words, explaining something on your credit report.
He statement cannot change what is there, and cannot be negative regarding someone, but it could be a statement that you experienced a job loss at some point in time, or an illness, that caused you to experience a financial downturn, which may have contributed to missing payments and a negative mark on your credit report.
A Notice of Disassociation is different in that it is a statement or notice, disassociating you from someone else.
In some instances if a person goes bankrupt, the address the bankrupt lives or lived at may be associated with the bankruptcy, or negative credit.
Anything that someone else has done that may impact your credit file, usually due to address or relation, you may wish to use a Notice of Disassociation to have a lender look closer at your file to see you are not the person who had the bad credit mark.
The notice disassociates you from them.