Rectifying Errors on Your Credit Report for Free

Friday, April 5, 2024 Uncategorized

It’s possible to correct errors on your credit report at no cost. Here are common mistakes that can be corrected:

Mistakes by the Credit Reporting Agency

Sometimes, the agency might incorrectly report your information. Common errors include incorrect personal details (like name, date of birth, or address), debts listed twice, or incorrect debt amounts. To resolve these, contact the agency directly. They may be able to rectify the error promptly or assist you in making the necessary changes.

Mistakes by the Credit Provider

Errors can also stem from the credit provider, such as:

• Reporting a payment as overdue by 60 days or more when it was less or not overdue.
• Failing to notify you about an unpaid debt.
• Listing a debt as default while it was under dispute.
• Not documenting agreed changes to payment plans or contract terms.
• Account errors due to identity theft or other mistakes.

To correct these:

• Reach out to the credit provider to request removal of the incorrect listing.
• If the provider acknowledges the mistake, they will direct the credit agency to delete it.
• If disagreements persist, contact the Australian Financial Complaints Authority (AFCA) for free and independent dispute resolution.

If you find these issues challenging to resolve, consider consulting a free financial counsellor.

Limitations on Changes to Your Credit Report

Certain data on your credit report cannot be changed or removed if it’s accurate, even if it’s unfavorable. This includes:

• All payment records from the past two years, irrespective of timeliness.
• Any overdue payments of $150 or more, past due by 60 days or more, which remain on your report for five years, even after settlement.
• All credit applications, including those for credit cards and loans, stay on your report for five years.

For an exhaustive list, refer to the contents of your credit report.

Caution Against Credit Repair Companies

While some companies claim they can correct your credit report for a fee, verify that any credit repair company you consider is licensed through ASIC’s website before proceeding. Opt only for a licensed provider. Typically, you can handle most corrections yourself without incurring the high fees these companies might charge.

Strategies to Boost Your Credit Score

If you’re looking to enhance your credit score:

• Lower your credit card limits.
• Limit your credit applications.
• Consistently pay your rent, mortgage, and utility bills on time.
• Make timely and preferably full credit card payments monthly, or at least pay more than the minimum due.

Implementing these practices will gradually improve your credit score, enhancing your chances of being approved for loans and credit in the future.