Your credit report is your face for the finance industry. It is in fact, the first introduction to let the financial companies know what is your worth in finances. This is important as well as a critical thing as a single mistake in a report can literally spoil your financial future.
You should have an overall idea about this situation. To get things rectified and removed, it is necessary to first know the different aspects of errors.
Why did mistakes show on your report?
Although mistakes happen rarely but there is a number of reasons that make them happen. Some of them are –
- Admin errors – These are the usual causes. Variations on name and address or typos make it happen. This results as an additional financial association, which is actually not related to you. Such mistakes can affect creditworthiness. Suppose you qualify for a loan or any financial product but the address is mentioned wrongly the finance company may not be able to find your exact location.
- Errors due to similar first and last name – This majorly occurs in the case of people with family-shared homes. Credit reference agencies may show default or missed payments of one person on the other person’s file. Such mistakes have a hugely bad impact on not only creditworthiness but in fact, one can lose a dream job.
How to check your credit report to detect the errors?
To detect the existence of any possible flaw in the credit report, you need to do the following.
Check credit report –
- The actual solution is to check your credit report regularly to find the mistakes on time. Even the least credit-active consumers should check at least three times in a year.
- Every credit reference agency has different versions of your credit profile. Also, their policy is different on credit scores. Take a look at –
- Experian: 0 to 560 is Very Poor
961 to 999 is Excellent
- Equifax: 0 to 278 is Very Poor,
467 to 700 is Excellent
- Callcredit: 0 to 550 is Very Poor,
628 to 710 is Excellent
Whenever you check to make sure you check all the reports from all the agencies. There are websites where you can use get your multi-agency credit report.
The above information is extremely important to ensure your future financial safety. This is the first thing that you should take care of because all your financial decisions are in the vital effect of your credit report.
How to get the mistakes rectified and removed?
The first thing is to contact the concerned party who made the mistake, whether it is a lender or credit reference agency. For instance – if a CCJ or default or debt is wrongly mentioned you need to inform the concerned side about the error. If the issue is from the side of the lender and not the credit reference agency then before going to the higher level it is better to go to the lender.
The lending company has a maximum 28 days to respond to your concern. Either it will make the amendment or will update the status that the issue is under investigation. Most of the lenders send a monthly report of the credit reference agency and you can expect the amendment to appear in your report in approximately six to eight weeks.
Errors degrade your credit score too. If you naturally have a poor payment history then by availing a bad credit loans you can improve credit score. Not all, but few lenders like British Lenders provide such loans on customised deals. However, if your credit score degraded due to any wrong information in your report, the only solution is possible from the end where the issue happened.
It can be impossible to decide and prove that the error spoiled or affected your finances. If you get a rejection, there can be many factors as, besides the credit score and credit report, many things come under consideration.