If you are considering applying for any type of credit, then it is likely that you have paid particular attention to your own credit report. While your credit score itself is important, something that is even more important is the report that goes with it.
When you apply for any form of credit, it is your credit report that lenders will look at, and it is this that will have the biggest influence on their decision to accept or reject your application. So, if you have used a credit bureau to check your credit report, then you will likely be alarmed if you have spotted that the information staring back at you is incorrect.
This can be a real cause for concern, especially if you were planning on applying for any form of credit. So, what should you do if the information on your credit report is incorrect? Check out this guide to find out.
How To Identify Incorrect Information On Your Credit Report
You might expect it to be easy to identify incorrect information on your credit report, but it isn’t always as easy as you might expect. While there is some clear information that you will be able to spot issues with, such as your name and address. There are some other errors which you might miss, in particular, errors with financial decisions that you have made in the past, such as credit cards and debts.
Most of the time, it is rare for errors to occur on your credit report. Especially errors in relation to financial decisions you have made. Most of the time, errors will be made with things such as your name and address because these are easier to get wrong. If you change address, then it might not update to your new address, and your old address might still be listed on the report.
Likewise, if you marry and change your name, then this might not update on your credit report. These might seem like meaningless pieces of information, but they are actually pretty important. In terms of the other information on your credit report, the best way to identify any incorrect information is to have a deep look at it. Read your credit report in depth, and this will allow you to easily spot any errors.
Can You Do Anything About Incorrect Information On Your Credit Report?
As we have said, it is easy to panic when you spot incorrect information on your credit report. After all, this information is incredibly critical if you are applying for any sort of credit. So, can you do anything if you spot any errors on your credit report? If you spot any errors on your credit report, this should be a cause for concern.
Especially if the errors shown are financial transactions which you know you never made. Errors on your credit report are one of the first signs of identity theft, so if you see any, it is important that you act quickly. When you spot an error, you will not be able to change this yourself.
Instead, you will have to speak to the credit bureau and dispute the error. To dispute the error, you should speak to the bureau from which you got the credit report. Most credit bureaus offer forms which you can fill out to dispute errors, and this makes the process a lot easier. Simply fill out the claim forms, specifying the errors, and then submit it.
The bureau will have to investigate your claim, and they will do this by speaking to the lender listed in the error. If the lender agrees that there is an error, that error will then be removed from your credit report.
What Do I Do If My Credit Report Is Incorrect?
Correcting issues on your credit report may not be as straightforward as it seems. Here's why:
- Filling out dispute forms is generally simple, but the back-and-forth process can become tedious.
- It often takes a significant amount of time for errors to be corrected.
Here are some alternative steps you can take if you spot an error on your credit report:
- Filing a dispute with the credit bureau: This is usually the easiest way to correct errors, but it's not the only method.
- Contacting the creditor directly: If you don't want to wait for the bureau, consider reaching out to the company that the error is showing for. This approach allows you to deal with the problem at the source.
- Firstly, resolve the issue with the creditor.
- Then, take this resolution back to the credit bureau. This should expedite the process, allowing you to fix the errors more quickly.
If you're dealing with imminent credit applications, working directly with the creditor can be beneficial:
- Obtaining a statement from the creditor: If the creditor confirms that the error is incorrect, you can use this statement when applying for credit.
- Overwriting the credit report: In many cases, providing the creditor's statement during your application can essentially overwrite the credit report error, increasing your chances of credit approval despite the issue on your report.
So, if you spot an issue with your credit report, it is totally understandable that you might worry. After all, errors on your credit report are one of the first signs that you might be the victim of identity theft.
So, catching them early on is very important. If you spot any issues on your credit report, you should dispute them with the credit bureau. Even if that error is simply a spelling mistake in your name, or the wrong address. It is critical that the information on your credit report is accurate, otherwise it could cause issues when you apply for credit in the future.
