Written for: GO Easy Financial
Disputing Credit Report Errors
You’ve done everything right. You pay your bills on time, keep your credit card use in check, and keep yourself from going too far into the red. But there’s a problem—you’ve pulled your credit report and it doesn’t seem right. You think that there are several errors on it, and as a result, your credit score is being dragged down. What do you do now?
Finding the Error
The first step is going through the report with a fine-toothed comb. Laurie Campbell, CEO of Credit Canada Debt Solutions, says there are several things specifically you can look for.
“Check that your birthday and address are correct,” says Campbell. Checking account details and the number of years the report covers is also beneficial. The maximum number of years taken into consideration on a report is usually around 6, depending on the credit bureau. If the report covers more financial history than that, it may not be eligible to count anymore, and should be addressed with the credit bureau directly, keeping in mind that different credit bureaus may have different policies.
If you’ve done your due diligence and ascertained that there is, in fact, a legitimate error on your report, you then have to make sure you have the evidence to support your claim.
Disputing the Error
While your first instinct may be to contact the credit bureau, Campbell says that sometimes you can go directly to the creditor to address problems with credit cards. Doing so can often resolve credit issues without an investigation by the credit bureau. Campbell recommends taking this step first (if applicable) as it may take less time than launching a full-scale investigation into your credit history.
The key to successfully disputing an error though, whether through creditors or the credit bureau directly, is the proof.
“Make sure you have your documented information well filed away,” advises Campbell. “Contact the credit bureau, ask for the forms needed to correct the error and attach proof. The more information you give, the better!”
Receipts and bank statements are crucial in determining whether or not the error is legitimate, and can also streamline the process. It is important to remember that once the bureau opens an investigation, the process can take around three weeks. It is taken step-by-step to verify where the fraud or error took place—if it took place at all.
Contacting the police if you see a credit card-related error can also work to your favour. Placing a fraud alert on your account can help prove to the credit bureau that the investigation you are asking for is legitimate.
Preventing the Error
Luckily, there are a number of ways to prevent errors from ever happening.
“Be über aware of where your wallet is at all times!” says Campbell. “Be accountable. Avoid phishing scams, or anything else that puts you at risk.”
In fact, the simplest ways of prevention are often the most successful. Things like covering your pin while your using your card, or not lending your credit card out to anyone are paramount. It pays to also be aware of certain tricks that fraudsters may use to get ahold of your information: they can call you from unlisted numbers and claim they are from the bank, and they can even steal replacement credit cards out of your mailbox.
“If they have your credit information, they have information on you,” explains Campbell. “And they can still try to apply for things, like new credit cards, which will drag down your score.”
Campbell also advises to do a “soft pull” on your credit report (which will not affect your score) regularly in order to keep a close eye on your complete financial history. If anything seems out of order, putting a fraud alert on your account or even cancelling the card altogether is the quickest and most efficient way of stopping further fraud.
While errors in our credit history may be scary, and even scarier if left unchecked, there are plenty of ways you can stop them from happening—and even if the worst has happened, there is no need to panic. By being honest and direct with the credit bureau and other creditors, as well as keeping your finances well in hand, you are well on your way to success.