By Loans Canada
Did you spot something inaccurate on your credit report? It happens more often than you think.
In this article we’ll look at how to get something negative taken off your credit report.
What is Your Credit Report?
Your credit report is like a report card for your finances. It tells lenders a story about if you have done a good job making your payments on time.
There are two major credit bureaus in Canada: Equifax and TransUnion. Both prepare a credit report for you. Your credit reports are usually pretty similar for both. However, sometimes your credit report may differ between the two because one lender might report to one of the credit bureaus, but not the other.
You want to get in the habit of regularly reviewing your credit report. When you do that, you can spot something that is inaccurate and take steps to get it removed right away. By doing that, it’s less likely to come back to cause issues later on when applying for a new loan.
How Will My Credit Report Be Affected by Something That’s Inaccurate?
You may not think it’s a big deal to have an inaccuracy on your credit report. However, one error can be all it takes to cause you issues obtaining new financing, depending on how big it is. If you don’t take the time to correct it, it could lead to a decline in your credit score, the last thing you want to happen, especially when you’re applying for a new loan.
When your credit score falls below 700, that’s when you can run into issues qualifying with a prime lender. When this happens, your interest rates tends to increase compared to when you had a better credit score. You may also have to pay lender fees that you didn’t previously have to pay.
The reason for this is because a lower credit score indicates that you have a higher chance of default on debt. Because of that, lenders usually charge you a higher interest rate to help mitigate the risk.
What Do I Do If I Find Something Inaccurate on My Credit Report?
If you find something inaccurate on your credit report, there’s no need to panic. You want to identify what type of information it is before you decide to act.
If your name is spelled incorrectly, this could seem like a minor clerical error, however, it can lead to bigger issues down the road. Your name not being spelled right could mean that someone else’s credit information shows up on your credit report.
Your lender could also report the wrong account information. For example, if you closed and paid off an account, your lender could report that it was never paid off and is in fact overdue.
That’s why you want to keep a paper trail of everything. That way you have proof in writing that you are in the right and can help get it corrected right away.