Check your credit report for errors

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credit report

Your credit report is a record of how well you manage credit. Mistakes on your credit report can give lenders the wrong impression. If there is a mistake in your credit report, a lender may turn you down for credit cards or loans. A higher interest rate may also be charged.

Mistakes can also be a sign that someone is trying to steal your identity. They may try to open credit cards, mortgages, or other loans in your name. Take a close look at your credit report at least once a year to see if there are any errors.

Mistakes to watch out for in your credit report:

Once you’ve received the report, check it out

  • Errors in personal information, such as an incorrect postal address or an incorrect date of birth
  • Errors in credit card and loan accounts, such as a payment made on time that is shown as overdue
  • Negative information about your accounts that is still listed after the maximum number of years it is allowed to remain in your relationship
  • Accounts listed that you have never opened, which could be a sign of identity theft

A credit agency cannot change accurate credit account information on your report. For example, if you’ve missed payments on a credit card, paying your entire debt or closing your account won’t remove the negative history.

Negative information such as late payments or defaults remain on your credit report only for a certain period of time.

Check your credit report for fraud:

Look for accounts that don’t belong to you on your credit report. Accounts you don’t recognize could mean someone has applied for a credit card, line of credit, mortgage, or other loan in your name. It could also just be an administrative error. Make sure it’s not fraud or identity theft by taking steps to correct it.

If you find an error on your credit report, contact the lenders and any other organizations that may be interested. Tell them about the potential fraud.

If it is a fraud, you should:

The Canadian Anti-Fraud Center is the central agency in Canada that collects information and criminal intelligence on fraud and identity theft.

Add a fraud alert

A fraud alert, or identity verification notice, tells lenders to contact you and confirm your identity before approving any credit application. The goal is to prevent further fraud from occurring.

Ask credit bureaus to put a fraud warning on your credit report if:

  • You have been the victim of a fraud
  • Your wallet was stolen
  • You broke into the house

You may need to provide identification and an affidavit to prove that you have been a victim of fraud.

You can set up a fraud alert for free with Equifax. TransUnion charges a $ 5 fee plus tax to set up a fraud alert.

Correct mistakes on your credit report

You have the right to challenge any information on your credit report that you believe is incorrect. You can ask credit bureaus to correct mistakes for free.

Step 1: Support your case

Collect receipts, statements and other documents related to your credit accounts. You may need them to prove your claim.

Step 2: Contact the credit bureaus

Both Equifax Canada and TransUnion Canada have modules for correcting errors and updating information. Fill out the form to correct errors:

Before the credit department can change the information on your credit report, they will need to investigate your request. It will verify your complaint with the lender who reported the information.

If the lender agrees that there is a mistake, the credit agency will update your credit report.

If the lender confirms that the information is correct, the credit department will leave the report unchanged.

Step 3: Contact the lender

You may be able to expedite the process by contacting the lender yourself about the error. The lender is the company you owe money to. Ask them to verify their files and provide the credit bureaus with up-to-date information.

Step 4: Submit your case

Ask to speak to someone above the credit department or your financial institution if you are dissatisfied with the survey results.

Federally regulated financial institutions must have a complaints handling procedure to help resolve disputes between consumers and their financial institutions. This procedure includes a third party dispute resolution body.

Use this Complaints Handling Procedures Finder to find your financial institution’s complaint handling procedure.

Step 5: Add a consumer statement

If the credit department confirms that the information is accurate but you are still not satisfied, please send a brief statement to your credit report explaining your position. It is free to add a consumer statement to your credit report. TransUnion allows you to add a declaration of up to 100 words. Equifax allows you to add a statement of up to 400 characters to your credit report. Lenders and others who review your credit report may take your consumer statement into consideration when making their decisions.

If you have any other questions, our experienced agents are here to help! If you are thinking about credit repair, chances are you will have a hard time getting approved for a car loan. Have you thought about giving us here a self-loans.ca a call? For every question we receive the same decision-making process, which means that no matter how bad your credit score is, you will receive the same degree of attention and care as everyone else.


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