Sunday, November 30, 2014

How to correct errors and check for fraud


Check your credit report at least once a year for errors and signs of identity theft. Think of it as an annual checkup for your financial health!
You have the right to dispute any information on your credit report that you believe is wrong. You can ask the credit reporting agencies to correct errors. It’s free.
Watch out for:
  • mistakesinyourpersonalinformation,suchaswrongmailingaddressesorincorrect date of birth
  • errorsincreditcardandloanaccounts,suchasapaymentyoumadeontimethatis shown as late
  • negativeinformationaboutyouraccountsthatisstilllistedafterthemaximumnumber of years it is allowed to stay on your report
  • accountslistedthatyouneveropenedyourself,whichcouldbeasignofidentitytheft.
    Why do errors matter?
    They may give lenders the wrong impression. You could be turned down for an application or receive a lower credit score than you should have. Even errors that seem minor, such as a misspelled name or a wrong address, could cause problems when you apply for credit.
    What cannot be changed?
    You cannot change factual, accurate information related to a credit account. For example, if you missed payments on a loan or a credit card, paying the debt in full or closing the account will not remove the negative history. Negative information will only be removed after a certain amount of time.
    Watch out for “credit repair” companies that claim they can eliminate negative information, for a fee, before the date it would normally be removed from your credit report. This is not possible. 

Steps to correct errors


How can I make a complaint?
If you feel you have not been treated properly by a credit reporting agency, you can make a written complaint to the office of your provincial or territorial government that handles consumer affairs.
How can I use my credit report to protect myself against fraud?
Look for accounts that do not belong to you. It could mean you have been targeted by fraudsters who have applied for a credit card, mortgage or other loan in your name.
Have you been a victim of fraud?
Ask the credit reporting agencies to put a fraud alert on your file.
It tells lenders to contact you and confirm your identity before they approve any applications for credit. The aim is to prevent any further fraud from happening.
How can I add an identity verification alert?
Under provincial law in Manitoba and Ontario, you have the right to add an identity verification alert, which asks lenders to contact you to confirm your identity before they approve any credit applications.
You do not need to be a victim of fraud to do this. There may be a small fee to add it. 

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