While it happens rarely, incorrect information may appear on your credit report as a result of you not updating information on your account (i.e. change of address or name) or updates from the lender not being received.
It’s essential that you keep us up to date should any of your personal details change, as it can cause problems and it’s important for you to deal with any errors as soon as possible.
To help you get started, we’ve taken a look at the effects different types of incorrect information can have.
If your name is even slightly wrong on your credit report, you could end up with a ‘merged credit report’, which means you might have someone else’s information on your credit file. Merged credit reports happen most often with family members who share a last name. It could even happen if you have a habit of applying for credit in different names. For example, you might have applied for a credit card as Liz Smith instead of Elizabeth Smith.
When someone else’s information is on your credit report, you will have their financial history and credit score instead of your own, which could negatively impact your chances of being accepted for a card, loan, mortgage and other forms of credit.
When lenders look at your credit report they can see your entire address history for the last 6 years. An incorrect address will impact the lender’s ability and our ability to verify your identity and match you to a credit report.
If there is an address on your credit report that you don’t recognise, it could be a sign of identity theft, as someone may be using your details to make purchases. We’ve prepared a full list of other signs of identity theft that you should look out for.
An incorrect address could also be the result of electoral roll information which hasn’t been updated or has been entered incorrectly by your local council.
Incorrect account balances
This is an important section of your credit report, as it shows lenders how consistent you are with repaying your debts. Your payment history and your credit utilisation (the size of your credit balance relative to the size of your credit limit) decides a considerable chunk of your credit score, so if there is a balance that is incorrect, it could decide your level of perceived creditworthiness.
Sometimes incorrect balances can happen if your lender hasn’t updated us on changes on your account yet. If your account information hasn’t been updated after 10 weeks have passed, you should get in touch with your lender.
If you notice an account that you don’t recognise, this could be a sign of fraud, as it may indicate that someone is using your details to open new accounts.
Being diligent combined with the knowledge we’ve given you about the effects of incorrect information will make sure you’re prepared should a situation ever arise. Test your knowledge now by logging in to your Noddle credit report to see your most up to date information by visiting noddle.co.uk.