How to Add a Notice of Correction to Your Credit Report

A Notice of Correction is a short statement, of up to 200 words, that you can add to your credit reference file. It allows you to explain the background to any information on your report that you believe is misleading or requires context, even if the information itself is accurate. Any lender searching your file is legally required to read the notice before making a lending decision.

Adding a Notice of Correction does not change your credit score. However, because lenders must review the notice manually, it typically stops automated decision-making processes and can delay credit applications.

This guide explains the statutory right to add a Notice of Correction, the rules governing what you can say, and the practical implications for future credit applications.

• Your Right: Under section 159 of the Consumer Credit Act 1974, you have a statutory right to add a Notice of Correction to your credit file if you believe an entry is incorrect or if you want to explain the circumstances behind it.
• The Benefit: It ensures that a human underwriter sees your explanation, rather than just a computer algorithm. This can be helpful if a late payment was caused by a specific life event (like illness or redundancy) rather than financial mismanagement.
• The Cost: Adding a Notice of Correction is free.
• The Downside: It will likely slow down future credit applications. Because lenders must read your notice, instant decisions ("approved in 60 seconds") become "referred" decisions that take days to process.

The right to add a Notice of Correction is established in Section 159 of the Consumer Credit Act 1974. This section provides a mechanism for individuals to correct wrong information or, if the agency refuses to make a correction, to place a statement on the file explaining why the individual considers the entry to be incorrect.

While the primary legislative purpose was for disputing incorrect entries, in practice, Notices of Correction are widely used to explain accurate but adverse information — for example, explaining that a series of missed payments was due to a period of illness or unemployment that has since been resolved.

When you add a Notice of Correction, it is attached to your credit file. It remains there until you ask for it to be removed, or until the entry it refers to is deleted (usually after six years).

When you apply for credit, the lender searches your file. If a Notice of Correction is present, the credit reference agency signals this to the lender. The lender is then obliged under the Guidance on the Use of Notices of Correction to read the notice. This usually means the application falls out of the automated scorecard system and enters a manual review queue.

The 200-Word Limit

The most important rule is the word limit. A Notice of Correction must not exceed 200 words. If you submit a statement longer than 200 words, the credit reference agency will reject it. This limit is statutory.

Content Restrictions

You cannot write whatever you want. The credit reference agency can refuse to add your notice if it considers the content to be:

• Incorrect: Factually wrong.
• Defamatory: Libellous or insulting to a third party (e.g., "This bank is a bunch of thieves").
• Frivolous: Not serious or relevant.
• Scandalous: Offensive or inappropriate.
• Unsuitable: Generally unfit for publication.

If the agency refuses to add your notice on these grounds, it must refer the matter to the Information Commissioner's Office (ICO) for a ruling. It cannot just ignore your request.

Adding to All Three Agencies

CRAs operate independently. If you want your notice to be seen by all lenders, you must add it separately to Experian, Equifax, and TransUnion. Adding it to one does not automatically copy it to the others.

Processing Time

Agencies typically process Notice of Correction requests within 28 days. Once added, it appears on your file immediately.

"Will a Notice of Correction improve my credit score?"

No. The notice is text-only. Credit scores are calculated using numerical data (payment status, balance, electoral roll). The computer algorithm cannot "read" your note and award you extra points. The notice only helps when a human being looks at your application.

"Can I use it to complain about a bank?"

No. A Notice of Correction is not a complaints channel. If you use it to attack a lender or make allegations of fraud that haven't been proven, the CRA will likely reject it as defamatory or unsuitable. Keep it factual and focused on your circumstances.

"Will it delete the default?"

No. The default remains on your file. The Notice of Correction sits alongside it. It says, essentially: "The default is there, but here is the reason why."

Password Notices (Cifas)

A specific type of Notice of Correction is a "Password Notice." This is used by victims of identity fraud. The notice states: "Please do not accept any application in my name unless the applicant provides the password [Unique Password]." This creates a powerful layer of security, as fraudsters won't know the password. However, it guarantees that every single application you make will be referred for manual checks.

Refusal by the ICO

If the CRA refers your disputed notice to the ICO, the Commissioner decides whether it should be published. The ICO's decision is final. They generally support notices that are balanced, factual, and non-abusive.

When to Use It

• Life Events: If your financial difficulties were caused by a one-off event (death in the family, sudden illness, redundancy, divorce) and you have since recovered, a Notice of Correction is highly effective. It tells the lender that the risk has passed.
• Disputed Debts: If you genuinely do not owe the money but the lender refuses to remove the default, a Notice of Correction stating "I dispute this debt because [Reason]" ensures your side of the story is on record.

When NOT to Use It

• Simple Forgetfulness: If you just forgot to pay a bill, adding a note saying "I forgot" rarely helps. It suggests disorganisation rather than a mitigating circumstance.
• Routine Applications: If your credit file is generally good, adding a Notice of Correction for a minor issue might do more harm than good by slowing down every application you make.

How to Write It

Keep it professional, concise, and unemotional.

• Bad: "I hate this bank, they ruined my life over £10." (Will be rejected).
• Good: "The late payment in August 2023 occurred during a period of hospitalisation following a car accident. I returned to work in October 2023 and have maintained all payments since. My financial situation is now stable." (Factual, relevant, mitigating).

• 200 Words: Keep your statement under 200 words, or it will be rejected.
• Manual Review: Adding a notice stops automated acceptances. Be prepared for applications to take longer.
• Three Agencies: You must submit your notice to Experian, Equifax, and TransUnion separately.
• Be Factual: Avoid emotion, abuse, or irrelevance. Focus on the reason for the issue and why it won't happen again.
• Free: There is never a charge for adding a Notice of Correction.