TransUnion Dispute: How to Correct a Mistake On Your TransUnion Credit Report

TransUnion Dispute

Keeping a close eye on your credit score, such as TransUnion credit score, is very important for your financial well-being. Keeping a good score will help you get the best deals for your new mortgage and credit card applications. However, if you have late or missed payments, credit recoveries, public records, and a lot of hard credit checks, your ability to obtain loans to buy a car, a new house, and even your ability to explore new job opportunities might be negatively impacted.

What’s even worse is when there are mistakes on your credit report. They happen more often than you think.The situation is terrible if errors on your report result in a low credit score. However, you can correct those mistakes and improve your credit report.

What is a credit report?

Your TransUnion credit report reveals a lot about who you are. Both your credit report and your application provide lenders with critical information about your ability to handle more debt. Your credit report, often known as credit history, is a dossier that outlines your credit record. When you apply for a loan or other credit product, it is recorded in your credit profile and can stay there for up to seven years. Your lender will provide details about you and your credit history when creating a credit account, such as a credit card or an auto loan.

A credit score is a figure between 300 and 900 that lets lenders know how quickly you repay the loans you take out. With a higher score, you are in a better position to pay back your loans. Credit reporting bureaus, such as TransUnion, keep track of all your credit accounts, assess how you manage them, and then use that information to assign you a credit score on a range of 300 to 900. A score of 900 is the upper limit and having a credit score near that figure is a sign you’re good with money. A score of 300 is the lower limit of the credit score threshold, and a score nearing that means you have a high debt to income.

The contents of a credit report

There are two credit bureaus in Canada. Each one uses its own scoring system. Although the information included in your credit report varies between the two bureaus, TransUnion and Equifax, the following is a list of information contained in both credit reports.

Your personal information

Your name, including any variations of your name that have been used on some accounts, current and past residences, social insurance number (SIN), date of birth, and current and former employment data are all examples of personal information.

Credit history

Your credit history shows when and how well you have paid off your previous and existing loans and debts.

Public records

Court judgments, bankruptcy records, consumer petitions, and tax liens are examples of public records or judgments that may affect your credit risk.

Credit inquiry

A credit inquiry is a record of every time a credit bureau verifies how creditworthy you are. This is often referred to as a hard or a soft credit check. When you apply for a loan, store line of credit, or credit card, it triggers a hard check. Too many hard checks within a short period of time will lower your credit score. A soft credit check happens when a third party, like a landlord or a potential employer, checks on your file.

Additional Information

Any other data that a creditor may find useful in making a risk analysis, such as banking details and collections history, can also be included in the credit reports.

Always check your credit reports

Up to one-third of all credit reports have some error. It could be a minor blunder, or it could be something that costs you points on your credit report. With this in mind, many financial experts advise thoroughly examining your credit report at least once a year and rechecking it when applying for a new loan. It is really simple to check your report. A lot of Canadian banks offer free access to your report. You can also use Borrowell, TransUnion, or Equifax. These last two have the most complete records.

Why you should never ignore your credit history

Ignoring your credit history is a big mistake. Would you ignore fraud on your credit card statement? Probably not. You need to check your credit score regularly. Here are some good reasons to consider setting up a schedule like you would for car repair, medical checkups, and buying birthday gifts.

It may have an impact on your finances

Creditors look at your credit report and credit score when deciding whether to lend you money. They also use them to calculate how much interest you’ll have to pay if you take out loans. If you have no credit history or lousy credit history, obtaining a credit card, loan, or mortgage may be more difficult.

On the other hand, with an excellent credit history, borrowing can be a lot easier. You can get a loan with great interest rates, which saves you a lot of money in the long run. It could even make it easier for you to rent a home or apartment or land a job in the financial industry.

It can help you identify any fraudulent activity

Your credit report can be used to look for signs of identity theft. This is something you should do for both credit bureaus at least once annually. Check to see if anyone has attempted to open credit cards or loans in your name. Any discrepancies can help you zero-in on any instances of fraud.

How are errors made on your credit report?

According to experts, a copy of your credit report should be reviewed twice a year. You don’t want to find out about an inaccuracy on your credit report at the last moment when your application for a loan or a line of credit is already in the process of approval. Ideally, you should examine your credit report as soon as you receive it.

If there’s a mistake on your credit report, it’s usually because it’s incomplete or contains information about someone else. This can happen for various reasons, including:

  • You have used more than one name in different credit applications
  • When your financial organization was inserting your contact information on the handwritten credit application, they made a clerical error.
  • An inaccurate SIN was provided, or your financial organization did not input the number correctly in your report.
  • Payments made by credit card were put to the wrong account.

Possible errors on your credit report

You need to look for the following in your credit report:

  • Inaccuracies in credit card and loan accounts, such as a payment you paid on time that is shown as late
  • Negative details about your accounts that have remained on your report beyond the maximum number of years allowed
  • Accounts mentioned under your name that you never created. This could be a case of identity theft.

A credit bureau can’t quickly change information on your credit report. For instance, if you have yet to make an outstanding credit card payment, paying the amount in full or canceling the account will not automatically remove the negative item from your credit report. Negative information on your credit reports, such as delayed payment or defaults, is only visible for a limited time.

Resolving a TransUnion credit report dispute

If you file a dispute with a national credit reporting agency like TransUnion, the agency may alter your credit report based on the data and records you give. Otherwise, the credit bureau will contact the company that reported the disputed facts and give them any pertinent information and any documentation you provide with your dispute. The credit bureau requests the company to evaluate your complaint, and:

  • Examine all of the information you supplied regarding your disagreement
  • Check the validity of the information they’re reporting to the credit bureau
  • Respond to your dispute with the credit bureau, including any modifications to the information reported
  • Inform you of the findings of the investigation done by the credit reporting agency

The bureau then waits for the company to amend their records and systems as needed. If you file a complaint with a company, they will investigate and send you the outcome of the investigation directly. Any modifications to the required information as a consequence of the inquiry will be reported to the credit reporting agency.

Fixing errors on your TransUnion credit report

You need to challenge the inaccuracy of the information on your credit report . You have the option of requesting free credit bureau corrections. Here are the steps to follow.

Step 1: provide evidence to back up your claim

Gather all of your credit card receipts, statements, and other papers. After all, you will need some evidence to back up your claim. If you are disorganized, it helps to put everything in a one place: you can use a box, a folder or use a scanner and save them on your computer.

Step 2: contact the credit bureau

TransUnion Canada includes forms for reporting mistakes and amending data. To fix inaccuracies, complete the form at their official website. The credit agency will need to verify your allegation before making any changes to your credit record. It will verify your claim with the lender that provided the data.

The credit bureau will modify your credit report if the lender confirms there is an issue. The credit bureau will not update your report if the lender reaffirms that the original information is correct. The credit bureau is asked to send a corrected copy of your credit report to everyone who recently requested it.

Step 3: contact your creditor

You might be able to accelerate the correction process by notifying the creditor of the error yourself. The creditor is the organization or individual you owe money to. You can request that they double-check their files and give the latest information to the credit bureaus.

Step 4: take your argument to the next level

If you are not happy with how the investigation of your dispute was handled, you can speak to an upper-level employee at TransUnion or your lending organization. Financial institutions that the federal government regulates are required to have a complaint-handling mechanism to help customers resolve disputes of such a nature. They should help you get to the bottom of the issue and resolve it.

Step 5: include a consumer statement

If the credit bureau verifies the information is correct, but you’re still unhappy, send a prepared summary to the credit bureau describing your situation. Adding a consumer statement to your report is completely free. TransUnion allows you to add a 100-word declaration or 200-word declaration in Saskatchewan. Lenders and others reviewing your credit report may consider your consumer statement when giving their final verdict.

TransUnion dispute: File a claim with TransUnion

TransUnion will investigate your dispute claim after submitting it and let you know whether the item(s) will remain on your report, be changed, or be erased. Please be patient while the inquiry is underway; TransUnion usually completes its inquiry within 30 days of receiving your request. Please keep in mind that submitting a dispute with TransUnion does not guarantee that your report will be changed.

If TransUnion confirms that the information in question on your credit report will be changed, you should double-check your report to ensure the modifications were done. The bureau’s answer will either include a link to the revised report, or a revised copy will be mailed to you. If TransUnion certifies that the information provided to it is correct, you may need to speak with the creditor or other source that was providing your financial data to bring about the revision and ask them to revise the data they have of you at hand.

FAQs About TransUnion Disputes

Is it possible to add a consumer statement to my credit report?

If the inquiry done by TransUnion shows that the data is correct, you may include a 100-word explanation note in your report to elaborate on your dispute. TransUnion demands a written request along with at least two pieces of approved identification. Your name, present address, birth date, and signature should all be submitted with this note of explanation, also known as a consumer statement. This statement should act as an explanation to companies looking at your credit report about the item(s) in your credit history.

Why am I unable to change my credit score?

A credit score is a numerical assessment of your credit file made at a specific point in time (i.e., when a creditor makes an inquiry). As a result, a credit score is not included in your credit report. The score may alter when the information in your credit report changes. When calculating the score, credit history data in your credit report is taken into account, such as the number of credit-related queries, unsettled balances, number of accounts, account history, and so on.

Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications