Your credit report holds crucial information pertaining to your credit situation and credit activity, documenting everything from your credit account status to your loan payment history. Not only that, but lenders then use this information to determine the interests rates they offer and whether or not they will give you a loan.
Thus, if you have an error on your credit report, it can cause a lot of damage. It might harm not only your chances of getting a loan but even your chance of getting approved for an apartment or cell phone service, having insurance or gaining employment.
Disputing an error
The Consumer Financial Protection Bureau talks about how you can dispute an error on your credit report. First, you should reach out to the company that first provided you with the information or the credit reporting agency. It does not hurt to contact both.
You can choose any number of specialty consumer reporting agencies to contact, and there are many options throughout the country. TransUnion, Equifax and Experian serve as the three biggest nationwide agencies that collect credit data, however.
Contacting agencies and furnishers
When contacting them, you can go by phone or email. Prepare several pieces of information to give, including your personal contact information and an explanation of the error you wish to fix. Provide evidence supporting this claim, as well, and save copies of all documents and communications throughout this contact.
Furnishers are the companies that provide you with the initial information, and they may include your landlord, your bank, a debt collector or a credit card company. You can also contact them to inform them of the situation using confined sample letters for easier communication.