Sometimes a missed payment or default on your credit file does not tell the whole story. If you fell behind on bills due to a sudden redundancy, a serious illness, or a messy divorce, the raw data on your credit report just looks like you are bad at managing money.
This is where a Notice of Correction comes in.
What is it?
A Notice of Correction is a short statement (up to 200 words) that you can legally add to your credit file. It allows you to explain the circumstances behind a specific negative marker. Once added, anyone who checks your credit file is legally obliged to read the notice before making a lending decision.
When should you use it?
You should only use a Notice of Correction for genuine, unavoidable life events. For example:
- "The late payments between March and June 2024 were due to a sudden redundancy. I secured new employment in July 2024 and all accounts have been paid on time since."
- "The default registered by [Lender] is currently the subject of an unresolved formal dispute via the Financial Ombudsman Service."
The downside
Adding a Notice of Correction means your credit applications can no longer be processed by automated computer systems. An actual human underwriter must read your file. This means instant online approvals for credit cards or loans will no longer work — your applications will be referred for manual review, which takes longer.
To add one, you must contact Experian, Equifax, and TransUnion directly with your 200-word statement.