In the UK, one in three adults has found mistakes on their credit file. Given that one-third have never even seen their own credit report, we can expect there to be millions of credit files out there containing errors.
Credit file errors are a common cause of low credit scores. Incorrect personal address, fraudulent applications that you didn’t make, and duplicated entries are all potentially hindering your ability to borrow at a low rate.
Understanding your credit score fundamentals is a good first step, but knowing how to challenge inaccuracies can help prevent being unfairly penalised.
Credit file disputes fall into a few different categories. These are:
The steps to challenge credit report mistakes begin with figuring out what is an error and what is a legitimate negative mark. Things like a high credit utilisation ratio, for example, are a legitimate negative mark, even if you never hit your credit limit. It may not feel fair, but it is important to know what constitutes a credit file error that you can dispute. For example, a late payment which you know you made on time could be contested.
Check each credit agency to see if they all have the same error, or if it is just with one.
Successful disputes are going to require documentation. If the dispute is over a late payment, collect bank statements showing the actual payment date. If the dispute is over an address, collect a few pieces of address proof, like utility bills and bank statements. For fraudulent accounts, police crime reference numbers will really strengthen your case, along with letters from the service provider alerting you to the fraudulent application under your name.
The success of your dispute will hang on the quality of evidence. It may be worth keeping physical copies of your digital evidence, just as a backup.
Under the Data Protection Act 2018, you have the right to challenge inaccurate information. When weighing up how to dispute credit file errors, UK residents can contact the credit reference agency first, but reaching out to the original lender can help you get the outcome you want quicker.
Each lender provides online dispute forms, which are faster than postal complaints. Credit file disputes can take up to 28 days, so it is best to do this sooner rather than later if you know you will be applying for new credit soon.
If your lender agrees, your credit file entry will usually be fixed within a few days. If they reject your claim, you can always provide further explanations and additional evidence.
It is important to dispute credit reports as soon as they appear with incorrect information. Around a quarter of Brits think that checking their credit report too often will hurt their score – this is incorrect and a major cause of credit file errors. By knowing what to do if your credit file is wrong, you can set the record straight and get access to the best rates possible.
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