When it comes to the health of your credit score, one of the most important things to do is make sure your credit report is up-to-date and error-free. The truth is that mistakes happen on your credit report. It isn’t necessarily fraud; it can be just an accident.
Taking the time to check your report is one way to protect your credit score. After all, it’s often one of the first things that a bank, credit union, or alternative lender will examine when you apply for a new credit product.
Unfortunately, any negative information on your report can lead to your loan application being denied, especially if you aren’t aware of it and the information is wrong. The good news is that there are ways to remove negative remarks if they’re there inaccurately. Read on to find out how to remove derogatory items from your credit report.
Key Points
- Negative items on your credit report can hurt your credit score.
- If any negative remarks are included on your credit report by error, removing them immediately can help improve your credit score.
- You can dispute errors on your credit report with the respective credit bureau.
- If you’re unsatisfied with the results of the dispute, you have the right to escalate your dispute to a higher level.
Can I Remove A Negative Remark From My Credit Report?
It’s important to note that any negative information that wasn’t the result of an inaccuracy or crime will not be removed from your credit report prior to the designated date.
Legitimate negative remarks on your credit report will remain for a certain length of time, depending on the specific note. However, if there are any inaccurate negative remarks on your credit report, you could have them removed.
How To Get Something Removed From Your Credit Report
If your credit report contains remarks that should not be there, you can either wait for the remark to drop off your report after the associated amount of time passes, or you can choose to dispute it.
Wait For It To Go Away Naturally
Here is a list of some credit remarks and how long each will stay on your report with each credit bureau:
| Remark | Equifax | TransUnion |
| Late Payments | 6 years | 6 years |
| Hard Inquiries | 3 years | 6 years |
| Closed Bank Accounts Due To Fraud | 6 years | 6 years |
| Accounts In Collection | 6 years | 6 years |
| Debt Management Program | 2 years | 2 years |
| Bankruptcy | 6 years | 6-10 years |
How To File A Dispute With The Credit Bureaus
If you wish to dispute a remark with the credit bureau, follow these steps:
Step 1: Gather Supporting Documents
You’ll need evidence to support your case when you dispute errors on your credit report with the credit bureaus. Supporting documents can include receipts, statements, or other account-related documents. You may also need to provide other information, such as:
- The company name associated with the remark you wish to dispute
- The account number of the remark you wish to dispute
- The reason for the dispute
Step 2: Reach Out To The Credit Bureaus
Depending on the credit bureau you’re disputing with, you’ll need to fill out the proper form to correct inaccuracies on your report.
How To File A Dispute With TransUnion
You can initiate a dispute with TransUnion online, by phone, or by mail.
| Online | To start a dispute online with TransUnion simply start an application through TransUnion’s online portal. |
| By Phone | You can speak to a TransUnion representative by calling: 1-800-663-9980 (for English service) or 1-877-713-3393 and 514-335-0374 (for French service). |
| By Mail | To initiate a dispute by mail you’ll need to download, print, and fill out an Investigation Request Form (English form or French form). You can send your completed form to the following address: TransUnion Consumer Relations Department P.O. Box 338, LCD1 Hamilton, Ontario L8L 7W2 |
How To File A Dispute With Equifax Canada
You can initiate a dispute with Equifax online or by mail. Regardless of which option you choose, you’ll need to complete and submit the Consumer Credit Report Update Form.
| Online | To start a credit report dispute online, you can go to equifax.ca. |
| By Mail | To file a dispute by mail, download, print and complete the Consumer Credit Report Update Form and send it to the following address: Equifax Canada Co. Consumer Relations Department Box 190 Jean Talon Station Montreal, Quebec H1S 2Z2 |
Step 3: Wait For A Response
The credit bureau will look over your dispute claim and investigate it thoroughly. This may involve speaking with the creditor or lender that reported the information.
If the lender admits an error, the credit bureau may remove the remark from your credit report. But if the lender confirms that the information is accurate, your credit report will remain as is.
Step 4: Speak With the Creditor
You also have the option to reach out to the creditor or lender who reported the information to the credit bureau and inquire about the error. Ask them to look at their records, and if they admit an error, they can send the credit bureaus the correct information.
Can You Remove An Error From Your Credit Report With A Goodwill Letter?
If neither credit bureau accepts your dispute because the negative occurrence was your responsibility, you can try sending a “goodwill letter” to the lender or collection agency that holds your debt and has been reporting your payment activity.
In the letter, you would explain your reason for being late on your payments and respectfully ask for them to delete any negative entries from your account.
They might agree to it if you’ve been a good client up to that point and assure them that you will not miss any more payments. They can then report the new information to whichever bureau(s) they work with.
Can You Remove An Error From Your Credit Report Through A “Pay For Delete” Deal?
It’s possible your lender or collection agency will not consider your goodwill letter acceptable. In this case, you may consider a “pay for delete” deal, which involves paying off a debt in exchange for the creditor removing the negative remark from your credit report. If you choose this route, be sure to get the arrangement in writing, and never try a pay-for-delete deal over the phone.
Can You Remove An Error From Your Report Through A Credit Repair Company?
Many credit repair companies advertise that they can have your negative credit information wiped clean for a price. However, these companies cannot do anything more than you. They can only help you through the dispute process to help you remove negative items on your credit report. However, they can only help you remove negative items that are errors.
How Your Credit Score Is Affected By Negative Remarks
Mistakes on your credit report can unfairly pull your credit score down. Even one error can cause problems for your score.
Good credit in Canada is a score of at least 660 and above. Anything under this can make it more difficult for you to get approved for loans and credit products. Even if you can get approved, you may have trouble securing large loan amounts or may be charged higher interest.
So, if you do find some kind of inaccuracy on your credit report, it’s extremely important to resolve the situation quickly. Although there are relatively fast and easy ways of doing this, the longer the error goes uncorrected, the worse your credit and approval chances will be.
Common Errors On Credit Reports
Now that you’re aware of what can happen if there’s an inaccuracy on your credit report, let’s talk about what kinds of common errors you may come across:
- Inaccurate Personal Details – Simple mistakes such as the wrong name, birthdate, or mailing address can spell disaster because you could end up with someone else’s credit information (or vice versa).
- Wrong Account Information – It’s also possible that your lender didn’t report your payment or account activity correctly. For instance, you may have paid your debt on time, but it was accidentally labelled as late or defaulted.
- Falsified Or Stolen Accounts – Identity theft and fraud are two unfortunate events that can affect your credit, not to mention complicated and time-consuming to deal with afterward. You may notice accounts you didn’t open or debts you don’t recognize that could point to fraudulent activity.
- Uncorrected Negative Information – Missed payments and other negative credit actions stay on your report for several years (unless due to an error or fraud). If so, a bureau may forget to remove the information after the allotted time period.
What Can You Do If Your Credit Bureau Rejects Your Dispute?
If you think you’re not being treated fairly, or you’re unhappy with how your dispute investigation went, try filing an official complaint with Equifax, TransUnion, or your financial institution (as long as it’s federally regulated). In either case, the complaint may reach a higher-level employee and be taken more seriously.
If this strategy doesn’t work, you can also complain to your provincial or territorial Consumer Affairs Office, where you can at least get some advice on how best to proceed. Once again, it can take time for any documents to be processed and results to be seen, so make sure to file your complaint sooner rather than later.
Final Thoughts
Errors and incorrect information can impact the health of your credit, which is why you should regularly monitor your credit report and score. Thankfully, there are many ways you can check your credit in Canada. If you do notice mistakes on your credit report that are pulling your credit score down, have them investigated and fixed immediately.
