Your credit score is one of the most important factors for getting approval for a flat rental, credit card or even a mobile contract. It is a way for lenders to look into whether you can pay your bills on time and be trusted to manage your finances. Mistakes can appear on your credit report which makes it important to regularly check your credit score with the three main credit reference agencies.
A notice of correction can be used for two reasons:
- You want to make clear that there has been a mistake. If you find information on your credit file that does not look correct, you can take steps to have it removed or add a notice of correction to your file. While you are waiting for information to be removed you can put in a notice of correction that you think there is an error on your file.
- You want to explain individual circumstances. There are extenuating circumstances that can have a dire impact on peoples finances, ranging from mental health crises to major accidents. If you want to explain the circumstances surrounding an item on your credit report and why that is not reflective of who you are in general then a notice of correction is your way to do so.
What is a Notice of Correction?
A notice of correction gives consumers an opportunity to add an explanation to individual items on their credit file. They are typically used to explain certain cases of unpaid debt that don’t reflect your normal history of making regular repayments such as an illness or unemployment due to company redundancies. Notices of correction should be kept at 200 words or less and should only be used in one-off circumstances that can easily be explained. It is not a place for you to make excuses about a long history of financial irresponsibility, but rather an outlet for you to explain a blip or outlier.
Will a Notice of Correction Fix My Credit Score?
No. A notice of correction has no impact on your actual credit score and will not ‘fix’ a poor rating. Instead, it is used to appeal to lenders who are deciding to approve or deny your application for a credit card, mobile contract or other loan products. Lenders are legally required to read a notice of correction but they are not required to take it into account when making the final decision to lend you money. In fact, adding a notice of correction may increase the amount of time it takes to process loan applications due to the extra time it may take to read it. For this reason, it’s important to only use the notice for one-off instances that can easily be explained. If you have regularly missed repayments, this is not the best way to address it.
How Do I Submit a Notice of Correction on My Credit File?
Did you know that you actually have three different credit scores? If you decide that a notice of correction makes sense for your situation, it’s important to note that you must submit separate notices of correction for each of the three main credit reference agencies — Experian, TransUnion and Equifax.
Here are instructions on how to get started:
- Experian offers options to submit notices of correction via online portal, by post or even by phone. Visit the Experian online dispute center for more information on how to contact them. If you prefer to contact them by phone, dial: 1 888 EXPERIAN (1 888 397 3742).
- TransUnion allows for notices of correction to be submitted online with options to manage it via phone or post once it is submitted. Navigate to the TransUnion online dispute center and scroll all the way down to ‘consumer statement’. If you need assistance by phone, dial: (800)-916-8800. They also have dispute FAQs that may be helpful.
- Equifax also has an online dispute resolution option. Navigate to the Equifax online dispute page and follow the prompts. If you need assistance by phone, the Equifax Customer Service Helpdesk can be reached at 08000 850 650.
Build Healthy Credit with Portify
The best way to give your credit score a lift is by showing good behaviour like regular on-time bill repayments. Portify is a community helping the hardest workers build their credit score by reporting good financial behaviours to all of the major UK Credit Agencies.
As always, please make sure that Portify is right for you before signing up. Credit building takes time and might not be right for you, check out our website before you sign up!