Negative information will stay on your credit report for up to six years, although there are exceptions. When lenders evaluate your credit report, the first things they will look at your payment history and existing debt. Those tend to carry the most weight when determining whether to lend you money. Late and missed payments will make it harder for you to get credit, as will bankruptcies.
THINGS TO LOOK OUT FOR
Considering your credit report is both a complete record of your financial activity and one of the main thing’s lenders use to assess your credit application, its accuracy is essential. Here are some types of mistakes that you should look out for:
- Errors in your personal information
- Errors in accounts and credit cards, such as payments that you made on time but got reported as being late
- Unfavourable information (missed payments, consumer proposal, bankruptcy) should not be there.
- The presence of accounts you never opened, suggesting identity theft and fraud
- Credit bureaus can correct a mistake on your report by merely gathering all the relevant documentation and filling out the required forms. This service is free.
If the creditor agrees there has been a mistake, they will correct it. If they don’t, you can make a complaint, attach a consumer statement to your report or file a grievance about the credit bureau itself.