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Your Guide on How to Dispute Credit Card Errors in Canada!

Most of us use credit cards, don’t we? This tempting product is significant to banks, but along with providing credit to people, is prone to errors, too. Frauds are rampant, but errors do occur at the stop you least expected. Errors on credit cards can compromise your credit report. As a result, it is suggested that you should evaluate your credit report at least once a year. In case you find any discrepancies, here is all you need to know about how to dispute credit card errors in Canada!

Read: Tips on Credit Score Check In Canada? Will It Lower It?

Types of Credit Report Errors and Their Significance

A credit score is as important as any important exam score you are waiting for. Your personalized credit report includes but is not limited to your ability to manage your debts previously taken, defaults, history of payments, bankruptcy, and much more. 

This is an important due diligence process carried out by the financial institution you want to seek a loan from. They evaluate your creditworthiness and then decide whether you are eligible for the amount you requested as a loan. Not only that, but this report also determines the rate of interest that would be applicable for your loan.

Read: What Does Your Credit Score Range Really Mean?

Any sort of error can make a dent in your financial profile. It may happen sometimes that the debt you already paid is not reflected in your credit report and instead shows pending. Your credit score can have a much downside as a result. Here is a list of common errors you can pay attention to while scrutinizing your report and dispute credit card errors in Canada:

  •       Inappropriate account status includes errors like closed accounts that are still open, shows outstanding debt that was paid, or payments that are made on time but reflected as late payments.
  •       Different accounts opened under your identity from any activities.
  •       Spurious personal information may be showcased such as email address (that is inactive), name change, or wrong date of birth.

Let’s see what the credit score look like before going to the part of the error!

Credit Score Range

Below are the various credit score ranges.

741 – 900 = Excellent

690 – 740 = Good

660 – 689 = Average or Fair

575 – 659 = Below Average

300 – 574 = Poor

741-900: Excellent 

This is the highest credit rating range. If you are in this range, you would get credit at a very low-interest rate.

690-740: Good

If you have this credit score, amazing! It tells that you are responsible for your debt payments and there are hardly any delays from your side.

660- 689: Average or Fair

This is a good range of credit scores. 660 is the average Canadian credit score, though different provinces have different average credit scores.

575-659: Below Average

This category of credit score attracts a higher interest rate if you get your application for debt approved.

300-574: Poor 

Individuals falling in this category are the ones who have a very bad track record of paying their loans, debts, etc.

Read: What Is Considered a Good Credit Score in Canada?

Steps to Avert Errors in your Credit Report

This brings us to the crux of this blog, how to dispute credit card errors in Canada? Hopefully, you can still save the sinking ship, if you do the right steps. Just like a central bank governs all the banks, in this case, it is the credit bureaus that work as a beacon of hope for you, by looking into the dispute. 

They verify how much accurate the information is and this process is done without any charge. Two major credit bureaus in Canada are TransUnion and Equifax.

Your action depends on the type of error you are disputing for. Either simply call your lender and make them aware of the discrepancies. They will transfer the information to a pertinent credit agency and get your data rectified. You can even choose to contact your bank and credit agencies at the same time to get your details updated. Here is a list to keep in mind:

Read: 5 Best Student Credit Cards in Canada for 2022!

1. Collect Relevant Documents

Banks and agencies would require your documents in order to rectify the errors. Documents like ID proof, Address proof, Statements of your bank accounts, or any relevant bills/receipts.

Stating the risk of an obvious, keep original documents with you and send only copies.

2. Contact Your Lender

As alluded above, you can choose to contact your lender and make them aware of your quandary. Send them with supporting documents to back your claim and your problem might get solved in this stage.

3. Contact Credit Bureaus

You can either choose to contact Bureaus separately or while you are contacting the bank. This action acts as an additional layer of conviction, to get your work done as soon as possible. Here is you can contact these bureaus and dispute credit card errors in Canada.

Equifax details:

You can call at 1-800-465-7166.

You can also choose to complete their Consumer Credit Report Update Form and fax or mail it at 514-355-8502.

TransUnion details:

You may call at 1-877-713-3393 if you prefer to call.

You can also choose to complete Investigation Form and mail it. 

After performing the above steps, credit agencies will look into your claim and make your credit report free of error, if there is any. TAT for this task is generally within a month. Moreover, you can also direct credit bureaus to send the correct updated credit report to your potential lender.

Read: Top 10 Ways To Pay Off Credit Card Debt In Canada 

What if the Things Go South?

There could be instances where you may not satisfied with the resolution provided. If you are not in consensus with the bank or credit bureaus with respect to the outcome, you can choose to add a consumer statement by requesting to the credit bureau. This is the way to express your conscience.

TransUnion gives you an opportunity to write a statement of about 100 words and Equifax allows up to 400 words. The good thing about this process is – it is free of charge and will reflect in your profile.

There is another level if still, the resolution is not up to your expectations. You can choose to contact your territorial consumer affairs office.

Read: How To Pay Off Credit Card Debt When You Have No Idea Where to Start!

Conclusion

Access your credit report at least once a year to avoid nasty surprises at the time of taking a loan or credit. You are still eligible for 1 credit report/ year from credit bureaus. Moreover, you can also request your free report and credit score from organizations like Borrowell, and get monthly updates to stay updated. Following this exercise can help you to stay immune to the consequences that take place due to errors and despite credit card errors in Canada.

read: Maxing Out Your Credit Card? Here Is What You Can Do!


Devanshee Dave

Devanshee is a staff writer at YourFirst.ca. She is a finance enthusiast and has completed her Master’s degree in Mass Communication & Journalism. She has worked as a journalist in a local business newspaper, multiple start-ups as well as finance and economy-related online media houses.

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