Credit card errors can have a significant impact on your credit score and hurt your ability to gain future credit. As a result, it can become much more challenging to qualify for quality cashback credit cards, loans, mortgages, and other forms of credit.

The good news is you can correct these errors! While fixing them may not get you a perfect credit score, it can certainly make it easier to get low-interest credit cards and other forms of financing. So let’s look at why credit card errors happen and how to correct them promptly.

How Do Credit Card Errors Happen?

Creditors may often make mistakes that can impact your credit score, and most of these errors happen when financial institutions fail to enter complete information on your report. Even the finer details like middle initials or incorrect figures can completely derail your credit outlook.

Another common error that can impact your score is that your file may not reflect accurate information from all credit card accounts. Some creditors might not give data to the bureaus until you ask them to do so. You should always work with a creditor or financial institution that automatically provides information to the bureau to ensure that your file is up to date.

Here are some of the most common credit card errors that you should look for when observing your credit file:

• Any clerical errors, such as discrepancies in your name or address.
• Multiple reports of the same credit card account.
• Your former partner’s debts after a divorce.
• Closed accounts are still showing as open.
• Bad credit debts that are more than seven years old.

The next time you order a credit report from a bureau, keep a close eye on the above common errors. Identifying, reporting, and getting them corrected promptly can save your credit score from having a substantial negative impact.

Updating Credit Report

If you notice any problems mentioned above, you can quickly get them fixed by contacting relevant stakeholders. For starters, you should immediately contact the credit bureau and the financial institution that reported incorrect information. You should also know that all parties are legally required to fix any incorrect information or inaccuracies in your report.

Most credit bureaus allow you to start the process online and by phone. You should always be ready with a comprehensive description of all your problems and add copies of relevant evidence to correct errors. They are obligated to investigate your claims within 30 days of the request.

You should also ensure to get a copy of anything your financial institution sends to the credit bureau. However, you should be patient in the process because it can take up to 90 days to hear back from the creditor.

Other Options

Most credit card errors or other inconsistencies in the report can be fixed quickly, but the credit bureau might not agree with your explanations of all disputable errors. In such instances, your errors may not be corrected, and these inconsistencies will continue negatively impacting your credit score.

However, you still have other options if the credit bureaus refuse to address your disputes. First, you should inform the bureau to add your statement on disputed items to your report.

This ensures that anyone who sees your report in the future will see a summary of all the disputed items, which will help them make an informed decision on whether to lend you credit or not. It helps future creditors know your side of the story.

Second, you can also hire a lawyer to advocate on your behalf and help you sort out the disputes. Remember that this is an expensive option and should only be considered if errors significantly impact your credit score.

Billing Errors

Apart from errors on your credit report, you might also find inconsistencies on your credit card statement. Therefore, you should be careful in reviewing your statement every month. These errors are easy to miss or minor, but when you add up all these errors, it can cost you a lot of money.

Double swiping a credit card and other technical issues when paying online via your card are some of the most common billing errors you should consider when reviewing your credit card statement. Also, if you’re not in the habit of going over your bill every month, it is high time you should start doing so.

Fixing Mistakes

Most errors can be fixed without getting into much of a hassle. You should always try to resolve disputes by contacting the credit card issuer without escalating issues. Most credit card companies will be more than happy to facilitate your request. However, if the problem persists, you should start collecting relevant documentation and evidence to support your claim and make multiple copies.

In addition, it is also important to notify any error or problem within 60 days. Send them a letter listing comprehensive details of the mistakes, your dispute and relevant documentation supporting your claim. Make sure to request a delivery receipt to ensure that you have proof that the letter has reached its intended destination.

Many Canadians are affected by credit cards and report errors every year. Therefore, it is important to review your credit reports and statements regularly. On the other hand, if you have crystal-clear credit and are looking for quality credit products such as travel and rewards cards, you’ve come to the right place!

Where to Apply for a Credit Card?

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