How to Correct Errors on Your Credit Report

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.

Statements – Notice of Correction – Explanations – Notice of Disassociation

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.

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<strong>What is Our Criteria For Applying?</strong> 
Every lender on our website has their own specific criteria by the basics are mentioned below and you must have a guarantor to be eligible. Simply select the lender of your choice and you will be taken directly to their website where you can apply. You will be required to submit your details including:<li style=”text-align: center;” data-mce-style=”text-align: center;”>Name (must be over 18 as the borrow, 21 or 25 as the guarantor)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Residence (your chances will improve if your guarantor is a homeowner)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Employment status (must be employed or on a pension)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Income (earning at least £600 per month and able to make repayments)</li><br /><li style=”text-align: center;” data-mce-style=”text-align: center;”>Monthly expenses (not have too many loans open or in major debt)</li>
You will then be asked to include the details of your guarantor and as mentioned above, this is usually someone who you know and trust and wants to help you with your personal finances. Ideally, a guarantor with good credit will maximise your chances of being approved based on the idea of ‘if someone with good credit trusts you, well we can too.'<strong>How Much Can I Borrow From Guarantor Loans?</strong>Guarantor Loans gives applicants the chance to borrow £500 to £15,000 depending on the lender. Some lenders we feature like Buddy Loans only have a maximum loan value of £7,500 and TFS Loans is the only lender that stretches up to £15,000.Factors that can influence the amount you can borrow revolve around having a good guarantor. One that is a homeowner, with solid employment, income and good credit rating will maximise your chances of borrowing the largest drawdown possible.The lenders featured on Guarantor Loans see a homeowner as someone who has already gone through the rigorous process of credit checking and affordability and if they can afford a house, they should be able to act as a guarantor for you.By comparison, having a guarantor that is not a homeowner offers slightly less security and means that amount you can borrow is slightly less too.Higher amounts may be available to those who already have a better than average credit rating, are homeowners themselves and a repeat customer with the lender who has already paid their loan on time. To apply directly with your lender of choice see <a href=”” data-mce-href=””>direct lenders</a>.<strong>What Does The Guarantor Have To Do?</strong>Upon completing an application, the lender will typically send you a <a href=”” data-mce-href=””>pre-contract loan agreement</a> and SECCI (Standard European Consumer Credit Information form) which will highlight the terms of your loan. You and your guarantor will be required to review the terms of the loan, including the loan drawdown, fees, repayment dates and responsibilities – and this can be signed via an online verification process using your email and mobile phone.The lender will usually carry out an individual phone call with you and your guarantor to ensure that you both understand the responsibilities and what is required of you – notably that if you cannot make repayment, your guarantor will be required to pay on your behalf. Further to some additional credit and affordability checks, funds can typically be transferred within 24 to 48 hours (or sometimes on the same day).<strong>Are Guarantor Loans Available For Bad Credit Customers?</strong>Yes, even if you have a history of adverse credit, <a href=”” data-mce-href=””>CCJs</a>, bankruptcy or IVAs several years ago, you can still be eligible. The idea is that you are using your guarantor and their financial history to ‘back you up’ and give your loan extra security. However, it is noted that your guarantor should have a good credit score and consent to co-signing your loan agreement.<strong>How Soon Can I Receive Funds?</strong>Guarantor Loans works with lenders that can facilitate funds within 24 to 48 hours of approval, or sometimes on the same day.When your funds are successfully transferred, most lenders working with Guarantor Loans will send the full amount to the guarantor’s debit account first. This is a standard security measure carried out by lenders to ensure that the funds are going to the right person and confirms the involvement of the guarantor. The guarantor usually has a ‘two week cooling off period’ where they can decide to pass on the money to the main borrower or they can change their mind and return the funds with no extra charges.