Millions of people have things on their credit report that they might wish weren’t there.
While most entries on credit reports can’t be removed – they can be explained. This is where a ‘Notice of Correction’ is helpful.
In this guide, we’ll explain exactly what a Notice Of Correction is, why you might want to use one, how you get one recorded, and any benefits they can offer.
What is a Notice of Correction?
A credit report can feel like a bit of a one-sided view of your credit history. Lenders get to record plenty of information about any money you’ve borrowed or debts you have – but new lenders searching your file don’t often get to see your side of the story.
A Notice of Correction goes some way to changing this.
You can add a notice of correction to any county court judgment (CCJ) or debt that’s recorded on your credit file.
A Notice of Correction is a short statement of up to 200 words that, when submitted, is added to the relevant debt.
Why might you want to add a Notice of Correction?
Adding additional information to the credit history that credit reference agencies hold about you can help future lenders to understand your personal circumstances.
Let’s consider an example.
A person slips into arrears (missed payments) on their mortgage and utility bills at the same time.
A credit report just records these things as facts – but two people in the same situation could have very different reasons for finding themselves in this situation. Therefore, a Notice of Correction logged with the Credit Reference Agency gives context:
“I could not work due to ill health during the Covid-19 crisis and had no savings account to fall back on. I spoke to each of my creditors and explained the situation before any missed payment. I have an agreement in place with each creditor that meant all my missed payments were caught-up with within 3 months.”
Whenever the person makes credit applications after this, the potential lender will see that there is a Notice of Correction logged against the entries on the credit file. This means they can make a decision with all the information to hand.
Of course, this is just an example – you can create up to 200 words that reflect your situation.
What can a Notice of Correction say?
Credit reference agencies will add your exact words to your credit report – so whatever your notice says, you should make sure it’s accurate.
That said, the credit reference agency could refuse to publish your notice if they considering it offensive or it has been used to apportion blame to someone else or a company directly. As such, you should try to be as diplomatic as possible with your words.
Will lenders look at a Notice of Correction?
Lenders will look at any Notice of Correction that appears on your credit reports. While this is good because it gives you a chance to explain your circumstances – it can also hold things up a little. Also, it’s worth noting that lenders are no legally obliged to approve any application just because you have filed a Notice of Correction.
Usually, it will be a computer that decides whether or not you fit the criteria the lender is looking for. However, if the computer sees that you have a Notice of Correction on your file, it will get a real person to review your application so they can read any notices.
This can slow the process of applying for credit down. However, if you feel the information you’re sharing is important, it’s a good way of making sure a lender gets to see it.
Does a Notice of Correction change your credit score?
Adding a Correction Notice to your credit reports does not change your credit score – for better or worse.
That may seem a little unfair if you feel there’s a good explanation for why you have a debt or a judgment on your file – but credit scores are automatically generated based on your credit conduct, rather than any explanation about why you may have had problems with repayments.
Of course, an added notice won’t reduce your credit score either – so you won’t do any harm by adding one if the information is useful.
Will a Notice Of Correction help with a mortgage application?
Unfortunately, a notice of correction is unlikely to boost your chances of getting a mortgage or other credit application. Regulated mortgage providers have very strict lending criteria – so an explanation of your circumstances is unlikely to change their mind about lending to you.
Rather than trying to explain any issues with a credit report directly to a lender – it might be a good idea to work with a specialist mortgage broker who will know where your application is most likely to be accepted.
A Notice of Correction can help prevent identity theft
There are paid services out there that can make sure any applications for credit that appear to be made by you go through additional checks to make sure they’re legitimate. However, you can use a Notice of Correction to do something similar.
Since lenders are obliged to read each Notice of Correction statement on your credit report, you can add one requesting that you’re contacted as a double-check for any applications.
How do you add a Notice of Correction to your credit report?
There are three main credit reference agencies in the UK. The process of adding a Notice of Correction to each credit file is a little different depending on the a agency you’re dealing with.
If you’re adding a notice to a CCJ, all the agencies will show the same information – but you’ll still need to send a Notice of Correction to each one individually.
If you’re adding a notice to a debt, each agency will may have different information – so you should check each individual credit report first, then send multiple notices as required.
How to add a Notice Of Correction to your Experian report
To contact Experian about a Notice of Correction you’ll need to use the Contact Us page on the company website.
From there, you should select “Errors on my Experian Credit Report” then, “I want to explain something on my Experian Credit Report” then follow the instructions.
How to add a Notice Of Correction to your Equifax credit report
To have a Notice of Correction statement added to your Equifax credit file, you’ll need to visit their OnlineHelp page then click “Errors On My Credit Report” followed by “Notice of Correction” on the list you’ll see.
You’ll then be able to follow the instructions to have your statement added.
How to add a Notice Of Correction to your TransUnion credit report
TransUnion UK is usually the least recognisable credit reference agency of the main three in the UK – but it’s the credit report you’ll see if you have a Credit Karma account.
You can email a Notice of Correction to them at [email protected]. You should find the TransUnion Credit Report Help article helpful if you need more information about what to include.
