The credit report: its errors and you

Your credit report is an important part of your daily life, as it provides a snapshot of your financial health. It shows your ability and your diligence in managing your debts and meeting your financial commitments.

Unfortunately, your credit report may, at times, contain errors that can tarnish your creditworthiness and lead to significant negative consequences, casting a shadow on your credit history. This may affect your ability to obtain favourable financing or cause you difficulties in accessing financial products, such as certain types of loans, for example¹.

That's why regularly checking your credit report is the first line of defence against these problems.

Here are the most common errors, and how to correct them.

Detecting inaccurate information

Credit reports contain a lot of information in which errors can occur²:

• Personal information errors: inaccuracies in your name, address, date of birth, or phone number.
• Credit report inquiries: pre-authorization or inquiry requests made by collection agencies or businesses for commercial purposes.
• Public records: outdated legal decisions, incorrect information about bankruptcies.
• Supplier accounts: incorrect account balances, inaccurate payment history.
• Banking information: bounced checks or overdrawn accounts.

Identifying the source

Everyday life is filled with situations in which your personal information is used in interactions with companies or public institutions. These are potential sources of errors that could end up in your credit report:

These are potential sources of errors that could end up in your credit report:

• Yourself: You failed to inform your creditors of a change in your financial or personal situation.
• Your creditors: They fail to communicate payment information or credit claim assignments properly or in a timely manner.
• Public organizations: Federal and provincial governments, courts, and collection agencies may transmit incorrect information.
• Your car dealer: They may incorrectly enter your personal information into their records.
• Your service providers: Billing errors or service contracts (cellphone, cable, etc.) can damage your credit report.
• Fraud and identity theft: Open accounts or credit requests that you do not recognize may indicate that your personal data is being used by malicious individuals³.

Correcting the situation

Have you discovered an error? Here's how to get it corrected^{4, 5}:

• Document the necessary information to demonstrate the error and justify the request for correction.
• Contact the credit agencies – Equifax and TransUnion – to pinpoint exactly where the error lies.
• Reach out to your creditors to resolve any issues at the source and request that they send a correction request to the credit agencies.
• Request the correction from Equifax or Transunion by submitting evidence of the error.
• Follow up with the relevant companies or institutions to confirm that the error has indeed been corrected.
• Document each step of the process, which will help you avoid any future issues.

It's crucial to regularly monitor your credit report to identify and correct any errors as quickly as possible. This will help you avoid long-term negative financial repercussions.

¹ Serious Mistakes Found in Credit Reports: Consumer Reports

² Checking for errors on your credit report

³ Report a scam or identity theft

⁴ Dispute Equifax Credit Report

⁵ Credit Report Disputes | TransUnion Canada