Since you don’t look at your credit report every day, it can be easy to brush off the need to dig in and get any errors cleaned up.
Ways that credit report errors can make life difficult
If you apply for a loan, lenders will be looking not just at your credit score, but at your credit report to see if you have any judgments against you, liens against your property, foreclosures, or vehicle repossessions. The presence of any of these could cause your application to be denied, or for you to be offered a much less attractive interest rate.
Lower credit scores could also cause you to end up with higher interest rates on your credit cards, or with your credit limits lowered.
Errors on your credit report could affect:
- Your military career
- Your ability to rent a house or apartment
- Your ability to get a security clearance
- Your ability to get a job, or to get promoted
I found some errors – what should I do?
The first thing you need to do is file disputes with every bureau that is reporting erroneous information.
How do I write a credit dispute letter?
No one wants to see negative information on their credit report. If your credit report shows inaccurate or incomplete information, you can mail a dispute asking the credit bureau to investigate the information in question. Use this dispute letter and customize it to suit your situation.
The credit bureau will send the dispute to the furnisher (the creditor) that holds the account. If the creditor determines that the account is being reported incorrectly, they will update or remove the account to correct the information.