Updating credit information letter
Many consumers are unaware that the information in their credit report is inaccurate until it is too late – when they are either refused credit for which they have applied; or when the credit provider offers them credit on less favourable terms than they would otherwise have received.
A simple solution to the problem is to check your credit report regularly.
“Your credit report contains all the positive, as well as negative information about your payment behaviour.
“In addition, it includes information which may, or may not be considered negative by a credit provider.
Factors like your gender, race, religion, nationality and marital status are not considered by credit scoring.
This is particularly necessary before applying for credit to purchase a big-ticket item such as a home, car or furniture; or even before applying for a credit card or to increase your credit limit on any of your existing accounts According to the latest available Credit Bureau Monitor (Q4 2015), just less than 0.4% of the over 23-million credit active consumers obtained a free copy of their credit reports in the three months reviewed by the Monitor.
This is despite the fact that every consumer is entitled to one free copy of their credit report from credit bureaus like Trans Union every 12 months.
Of the credit reports issued to consumers during Q4 2015, over 17% were challenged for alleged inaccuracies.
Of these, nearly two-thirds were resolved in favour of the consumer, Consumers who regularly check their credit report are in a better position to make sure their report accurately reflects their credit history and behaviour.