Your Credit Report

Everytime you apply for a credit facility with the bank or any credit facility provider,they will access your credit report.

Your credit report shows your credit history, it shows all the loans you had(closed loans), open loans and your non-performing loans. It's serves as a credit reference and aid credit providers in decision making, whether to approve your loan or not, where they should price you depending on your risk category.

I employ you all to take a keen interest in understanding your credit reports. Whenever the bank accessess your credit report please request for a copy to scrutinize the accuracy of the data captured.

Mistakes do happen and some of the mistakes can be very costly.

Here are the steps to take when your credit history is inaccurrately reported.

  1. Scrutinize your credit history-data captured.
  2. If any discrepancy is reported, please do not just sit and hope the mistake will correct itself.
  3. Engage the institution/creditor that provided the incorrect information, point out the error and have then correct it.
  4. If necessary you can follow up with a letter to document your request and your creditor's response.
  5. Ask the institution/creditor to provide a clearance letter in the case of a loan that was long settled and still reflected as an open loan or a letter confirming clearance of arrears in the case of loan arrears.
  6. Give your creditor time to fix their mistake and follow up after a month to check of the error has been fixed.

Today I inspected my credit report and picked an error. A vehicle loan I have long settled in 2014 still appeared as an open loan. I have engaged the bank that financed me at the time to fix this.i have also requested for a clearance letter for my record keeping.