When is the last time you checked your own credit rating? I’ve made it a habit to check my credit bureau every 6 months or when I close a loan or credit card and here’s why.
I purchased a new computer in the fall. I had the money to buy it out right but decided to use the 0% financing & no payments for 3 months. The balance was paid on the very last day and received a stamped confirmation of payment. Two months later, I receive a call from CitiFinancial that I owe $106 in late interest. I corrected Citifinancial that I paid on time, with stamped confirmation and I was not paying any late interest for their processing error.
Late reportings decrease credit rating
Banks or any institution that reports on credit bureaus make errors. On multiple occasions, errors have happened where there is a negative blemish on borrower’s credit that greatly lowered their credit score. Most often the borrower was unaware of these errors.
The lowered score affected their approval and delays for financing on their new property.
Here are two scenarios that created a problem for the client.
1) Client receives a new credit card in the mail. They get a statement in the mail with the annual fee and cancel the card before using it as they don’t need the credit card or they don’t want it for the fee attached to it. The customer service rep tells them that the fee will be revised and the clients think that it was taken care of when they get their next statement and don’t follow up.
A few months later, they get their credit bureau pulled and see that the credit card was reporting that annual fee as late and after 9 months, it reports that credit card was written off by credit grantor. It negatively impacted their score and credit history.
2) Client had a loan for 3 years with regular monthly payments. Last payment was taken from their bank account and they thought their loan was complete when the last payment was withdrawn. A year later they apply for a mortgage and this loan is showing in default of $25 and written off by credit grantor. The bank made an error on the payment, didn’t notify client of remaining balance and because they wrote off the loan for $25 on the credit reporting, it had negative imputations on the clients score.
Credit Rating Errors happen
Best way to avoid these errors is to be diligent and check your own credit bureau. If you notice an error, contact the bank or institution that is reporting this and notify Equifax of the error.
For more information on obtaining your credit bureau, visit www.equifax.ca.
For more tips on Credit, visit www.jacquelinemortgages.com or contact Jacqueline Jeffries at 780.220.5968 or email@example.com