Credit Report Repair

According to recent studies more than 3 in 5 consumers have negative information in their credit reports, and nearly half of the studied reports contained errors (a full 35% of credit reports contain errors). The Credit Reporting Act addresses this issue. K & G Debt & Credit Professionals can help you to have this information removed from your credit report.

If the derogatory information on your credit report is accurate, then with time and the resolution of your debt, K & G Debt & Credit Professionals can help you to improve your credit rating. K & G Debt & Credit Professionals will also be happy to give you any information that we possess in order to aid you if you decide to repair your report on your own (see “helpful resources” page for a copy of the credit reporting act).

The following information on how to repair inaccuracies on your credit report is provided on the Equifax website (www.equifax.ca) along with additional information that may be helpful. Relevant information is also provided on the TransUnion website.

First you will need to complete a Consumer Credit Report Update Form. Once complete begin by contacting Equifax.

Telephone Equifax at 1 800 465 7166 between 8:00am and 5:00pm ET
Write to Equifax at:
Equifax Canada Inc.
Consumer Relations Department
Box 190 Jean Talon Station
Montreal, Quebec
H1S 2Z2
Send an e-mail request to: consumerrelationsequifaxcom (consumerrelationsequifaxcom)
If you use an e-mail program other than Netscape or Internet Explorer, please copy and paste the address into your preferred e-mail client.

After Equifax receives your call, letter or e-mail request, they begin the Dispute Resolution process.

First, they review and consider the information you have sent them about your dispute. If this initial review does not resolve the problem, they will continue their investigation. This involves contacting the submitter (creditor) of the disputed information on your behalf to review the details. They will investigate and report their conclusions to Equifax. Based on their findings, Equifax may make changes to your credit file. If the disputed information is correct, they will not make any changes.

Equifax will send you a revised credit report if changes are made as a result of the Dispute Resolution process.

They will also send your revised credit file to any company that requested your credit file 60 days prior to the change. In some cases, it may be a period longer than 60 days.

What is a Credit Score?

A credit score is a statistical formula that translates personal information from your credit report and other sources into a three-digit score. For example, when you fill out a loan application, pieces of information from the application along with information from your credit report will be used to compute a score that indicates to the lender the statistical probability that you will become delinquent on the loan.

Some scores that lenders use are based strictly on the data in your credit report; these are known as “bureau scores”. The most widely-used bureau scores in Canada were developed by Fair, Isaac and Co., headquartered in San Rafael, California.

It is important to understand that a credit score is only one criterion that a lender will use in making decisions. For example, in mortgage lending, the lender will take into account the property being purchased and the homeowner’s equity. Many lenders look at their relationship with the customer, which may include other financial services. Each lender will have its own policies and you should feel comfortable asking a credit institution about these. Our work with credit grantors has shown us that most lenders want their customers to have a better understanding of their lending processes.

How can I improve my Credit Score?

Pay all of your bills on time. Paying late, or having your account sent to a collection agency has a negative impact on your credit score.

Try not to run your balances up to your credit limit. Keeping your account balances below 75% of your available credit may also help your score.

Avoid applying for credit unless you have a genuine need for a new account. Too many inquiries in a short period of time can sometimes be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties, or overextending yourself by taking on more debt than you can actually repay. A flurry of inquiries will prompt most lenders to ask you why. However, most scoring formulas will not penalize you if, for example, you are shopping for the best mortgage rate or the best car loan.

Keep your older credit cards, as old credit rates higher than new credit. The longer you have the credit card or loan, the better.

Your rights under the Canadian Credit Reporting Legislation.

All of the Canadian provinces, except New Brunswick, have enacted consumer credit reporting legislation, called the “Reporting Acts,” which regulates the means by which credit reporting agencies (CRAs) conduct their business and handle sensitive consumer credit information. The Reporting Acts give you specific rights, several of which are outlined below.

You can find out what is in your file. At your request, a CRA must make available to you the information in your file and list all companies that have requested it recently. Equifax charges a fee to deliver your credit report to you online, but not for the delivery of a consumer credit report via mail.
You can dispute inaccurate information with the CRA. If you notify a CRA that your file contains inaccurate information, the CRA will investigate your claim by presenting all relevant evidence that you submit to the credit grantor. The lender must investigate your evidence and report its findings to the CRA. The CRA will then advise you of the investigation results and forward you a copy of your report with any changes. If the CRA’s investigation does not resolve the dispute, you may add a brief statement to your file. The CRA will include a summary of your statement in future reports. If an item is deleted or a dispute statement is filed, an updated copy of your file will be sent to any company that has recently received your file, indicating there has been a change.
Inaccurate information must be corrected or deleted. A CRA must remove or correct inaccurate or unverified information from its files. The correction to file will occur once an investigation is complete; the amount of time required to complete an investigation and correct information may vary from case to case. However, the CRA is not required to remove accurate information from your file unless it is outdated or cannot be verified.
Access to your file is limited. A CRA may provide information about you only for the specific reasons detailed in the Reporting Acts, usually for consideration in an application with a creditor, insurer, employer, landlord or other business.