3 Things You Shouldn’t Do if You Find a Credit Profile Error
Let’s say you had some big purchases planned for the year. Perhaps, it is a new house, a new car, or a new office. If you get what you’re looking for, you’ll finally start that new chapter of life you’ve been so eager about. Of course, you’ll need a loan to accomplish things. Let’s say you live in Kenora and travel to Toronto regularly – bad credit is not a problem, and you’re confident you can get a loan. So you apply for one and to your surprise, you get denied. But you know you have good credit! You do some digging, and discover there are some errors on your credit report. These things do happen, but the way you react to them is very important. In fact, your response in how you plan to dispute a credit error could either clear the situation up, or just make it muddy.
Remember when you were a teenager, and your parents got on your case about something. It could have been a misunderstanding, a concern about one of your habits, or a legitimate wrongdoing on your behalf. Wouldn’t you agree that the interactions always went smoothly if you responded calmly? And the opposite was true too. If you yelled back, the situation got more tense and complicated.
Likewise, when dealing with credit errors, understand that you are dealing with other human beings. They make mistakes too. That doesn’t mean you have no license to get upset since it’s an inconvenience, but you shouldn’t go too far off the rails. You’ll only exhaust yourself.
Why errors happen in the first place
- Handwriting errors - Sometimes a credit error happens because you wrote incorrect information, or the writing itself was messy (leading to data entry guesswork).
- Furnisher errors - Banks, credit card companies and auto lenders may not have the best data collection methods, and thus, make mistakes with how they process your information.
- Reporting errors - Credit reporting agencies also get things wrong too. They may collect wrong info from furnishers, or computer glitches that may render some false information.
As human beings, it’s natural for us to take a credit “hit” personally, even if it’s an error. However, it’s important to remember that it’s not a permanent thing, and you can fix it. In addition to anger, don’t let other emotions such as worry consume you. If you are confident that your profile has an error and you have proof of it, you can be sure to see it disappear in due time.
Approaching it the wrong way
There are ways to address a credit blunder, and there are ways not to do it. You see, maintaining your profile is like taking care of a garden or your lawn. You need to water it, treat it, manicure it – at times weeds will pop up and you need to get them out. But if you’re not careful, killing the weeds will kill the grass and flowers as well. In terms of your credit, approaching an error in the wrong way, especially if there are several of them, could lead to some of these blunders going unresolved.
Avoid addressing errors in the following ways
- Online complaints - Sending complaints via the web is not a good idea. Arbitration clauses can backfire against you, and render your online request impractical.
- Multiple complaints in one letter - You have a greater likelihood of having multiple errors if they are addressed individually, rather than one big complaint.
- Lack of clarity - Credit reporting agencies aren’t your enemy, but they won’t process your request if you’re not clear about your complaint. That’s why it’s essential for you to circle or highlight mistakes, and provide proof that would bring an error to the spotlight.
Ignoring it altogether
A fire that’s left alone doesn’t die on its own, it grows. And if water isn’t put on the flames, it will mushroom into an inferno. Likewise, coming to the conclusion that an error is something that will go away on its own is a false and potentially harmful assumption. Your credit reporting agency is not responsible for lowered scores that result from errors, so it’s up to you to get it corrected. Yes, it may seem unfair especially if the error originated with them, but it still falls on you.
Don’t let it slide
- Make inquiries immediately - It’s one thing to see an error – it’s another thing to react to it. If you notice something is off, you need to report it asap.
- Gather your evidence - Also important, is the gathering of evidence to support your claim. The last thing you want is to have a credit company challenge you on the basis of not providing them with suitable proof.
- Don’t give up! - It’s also important for you to remain strong, even if a credit agency disputes your claim. If the evidence is there, they can’t fight you forever.
Ultimately, your decision to take action and remain persistent no matter what will pay off. It can be somewhat time-consuming trying to get an error removed, but the benefits are undisputable. The most obvious advantage of taking action is preventing a possible dip in your credit score. You don’t want a loan or mortgage to be denied because of simple technicality. So don’t sit back if there’s an obvious error on your profile!
Don’t sweat it
Inconveniences befall everyone of us. It may come as a surprise to you if a lender denies your loan application, but errors and technicalities could be the cause of this. But that in itself is not necessarily the problem, assuming you to take action. What matters is how you respond to the blunder. You may be upset or confused at what’s taking place, but you have to put emotion aside and work towards fixing the error without making things worse. You can do so by following the advice mentioned throughout this post. You will prevent a frustrating situation from snowballing into much a larger burden.