Credit bureau reports sometimes have errors, so it’s important to monitor your credit regularly. You would not want to be denied a loan because of an uncorrected mistake on your report or in your credit history.
Sometimes the problem is simple, such as a transaction by someone else with your name or a similar name. The inaccurate information could have also come from the lender or a data-entry error. You can resolve mistakes like these quickly. Equifax and TransUnion have formal processes in place for you to dispute and remove incorrect information.
A bigger issue is if someone has stolen your identity. In identity theft cases, the problem is likely more complex than you realize at first glance, and it may require more work and time to fix it. You may have to put a pause on applying for new credit in this case.
Unfortunately, identity theft for financial gain is increasing in Canada, and that is another excellent reason to monitor your credit reports and score regularly. If you see a credit entry that is not yours, investigate it right away.
In all cases, prepare to be patient. Corrections often take time and persistence. No matter who you deal with on the phone, in an online chat or in a letter, be firm but kind. After all, your credit and finances are at stake.