How to Check & Fix Credit Report Errors in Canada

How to Check & Fix Credit Report Errors in Canada

Posted on March 6, 2023

Knowing how to check a credit report for errors is key when preparing for an auto loan. It’s one of those tasks you can do anytime but is best done ahead of the loan application. That way, the corrections have time to work their magic.

Corrections won’t always increase your score but as your credit report has such an influence over your life, it makes sense to keep it as accurate as humanly possible.

Things To Watch When You Check For Credit Report Errors

Mistakes happen, it’s part of life. In most cases, errors are harmless and won’t impact your credit score or financial wellbeing in any way. In a few cases, a simple mistake can impact your chances of getting a loan and your overall credit score.

Common errors we see on credit reports include:

• Incorrect date of birth – Often a single digit mistake or transposed digits that make it incorrect.
• Wrong address or old address – Having the wrong address is a simple error but definitely one that will impact your ability to borrow.
• Mistakes in payment history – Payment history that shows a late or missed payment when you always pay on time is one of those mistakes that will hit your credit score.
• Settled accounts still marked as open – If you have had previous loans or payments such as phone contracts that were settled but never marked settled, now is the time to correct it. These can contribute to your debt ratio which can impact the amount you could borrow in the future.
• Loans or accounts you didn’t apply for – This isn’t always a mistake but could be fraud. Any account you didn’t open or loan you didn’t apply for needs to be followed up immediately.

How To Correct The Credit Report Errors

You have the right to have any errors on your credit report corrected without charge. As long as you can prove it.

To correct an error on your credit report, you should first gather that evidence. If you changed address, find the documentation. If you settled a previous loan, find the settlement letter.

Contact the organization in question and request they make the correction on your credit report. Provide copies of the evidence as required and give them time to process the correction. Most companies have departments to take care of this and will make the changes as requested.

If they don’t, contact  Equifax Canada or TransUnion Canada and request they make the correction. The credit bureau will check with the organization who made the error. If they agree it was a mistake, your report will be updated.

If the lender doesn’t agree, you can escalate your case and have it investigated at a higher level or appeal with the regulator.

Finally, you have the option to add a consumer statement to your credit report. This is a small personal statement outlining the issue and explaining things in your own words.

While you don’t have much power over your credit report, you do have some. Exercising that power when necessary is something you should definitely do. Especially if you’re planning a car loan at some point in the future!

Contact Unique Chrysler for help, advice and competitive car finance.