How to dispute your credit report

Regularly checking your credit report is key to ensuring it’s free of errors. If you do find any mistakes, you need to take steps to get them fixed as soon as possible.

What is a credit report?

Credit reports show how well you’ve managed credit in the past. They are compiled by different credit reference agencies (CRAs). The three main CRAs are TransUnion, Equifax and Experian. Each CRA compiles similar information, but sometimes, the details vary. 

Your credit report affects your chances of being accepted for products such as credit cards, mortgages and loans, and even mobile phone and gas and electricity contracts. That’s why it’s essential to regularly check your credit report and ensure it doesn’t contain any incorrect information. 

What kind of incorrect information can be displayed in a credit report?

Mistakes that you might come across on your credit report include:

• Incorrect personal details

Ensure your name is spelt correctly and your address is accurate – this is particularly important if you live in a flat. For example, your address might be listed as 50A Orchard Road when it should be Flat A, 50 Orchard Road.

• Identity errors

It’s important to check that accounts belonging to another person with the same or a similar name have not been included in your report. Incorrect accounts could also be displayed on your credit report if you have been a victim of identity theft.

• Inaccurate payment history

A missed credit or bill payment could be recorded on your report even though you made the payment on time.

If you’ve received a County Court Judgment (CCJ) and settled it within the required time (usually one month), there should be no evidence of it on your credit report. But in rare cases, if the payment information hasn’t been received from the creditors, it might still show on your record.

• Incorrect account status

You should also check whether an account you closed is still being recorded as open on your credit report. If your report still states that the account is open 45 days after you closed it, you should contact the CRA in question.

• Data management errors

Other potential errors include a credit balance being reported incorrectly or your credit card credit limit being wrong. 

When should you dispute something on your credit report?

If you find any inaccuracies on your credit report, no matter how small, you should get them fixed as soon as possible. Incorrect information on your credit report can delay credit applications and even result in them being rejected. You might also end up being offered a higher interest rate than you would have otherwise received.

Mistakes on your credit report are more likely to affect mortgage and loan applications rather than mobile phone contracts, but it’s still best to get them changed. 

How do you correct information on your credit report? 

To get a mistake corrected, follow the steps below:

• Contact the provider or lender: Your first port of call should be the provider or creditor associated with the error. So, if you want to dispute your credit card company’s claim that you missed payment, you need to call its customer service team, explain what is wrong, and be prepared to provide documents to support your claim

• Wait for the provider to contact the CRAs: If your provider agrees that an error has been made, it should update its records within 30 days and contact the relevant CRAs to correct your credit report 

• Talk to the CRAs directly if necessary: If your credit provider says it has no record of the error or if the error is related to your personal information, you should speak directly to the CRA(s). Each CRA should then review the mistake and make the relevant changes 

What to do if you disagree with the outcome

If the credit provider doesn’t agree with your correction, you can challenge its decision and make a formal complaint. Your provider should tell you how to do this. There will also be details on its website. 

You can also raise a dispute directly with the CRAs that are displaying the error. To do this, you usually fill out an online form. 

If this doesn’t work, you can escalate your complaint to the industry ombudsman. If it’s a financial service, such as credit cards, you’ll need to complain to the Financial Ombudsman. If it agrees with you, it can ask for the error to be removed.

If your complaint is with an energy company, speak to the Energy Ombudsman. This might be the case if your credit file shows a mark because your energy firm claims you owe money when you don’t. 

In the meantime, you can contact the relevant CRA and ask it to add a notice of correction to your credit report. This is a 200-word statement explaining your side of the story. It should be concise and accurate and should set out your case. For instance, you could use a notice of correction to explain why you missed a payment.  

A notice of correction won’t impact your credit score, and it can delay credit applications as lenders will need to read what you’ve written. However, it allows lenders to consider your circumstances before deciding whether to accept your application. 

How long can a dispute take?

If you raise a dispute with your credit provider, it can take around 30 days for the issue to be resolved and another five weeks for the relevant CRAs to update your report. 

If you need to raise a dispute with a CRA, the mistake will generally be corrected in around 30 days.

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