Credit reports from Transunion, Experian, and Equifax are used to determine everything from your ability to get new credit to the rates that you pay for credit. If the wrong information is listed on your credit report, it can prevent you from getting approved for new credit and possibly have a negative impact on your current accounts through higher interest rates or reduced credit limits.
Where do the Credit Bureaus receive their information?
The credit bureaus receive your information through furnishers. Furnishers are businesses like banks, mortgage lenders, credit card companies, and medical or utility providers that provide data related to account ownership and performance. The furnisher has an obligation to provide the credit bureaus with accurate information.
However, when inaccurate information is provided to the credit bureaus, the credit report errors could lead to denial for new credit, a change in current credit terms, or a lower credit score.
How do I check my credit report?
Accurate credit reports are key to your financial health. Check your credit reports frequently. You can request a free credit report from each bureau every twelve months, but there are many ways to monitor your credit files on a regular basis. To check your report, send a credit report request letter to Transunion, Experian, and Equifax.
The Consumer Financial Protection Bureau works to prevent credit report errors
A recent report by the Consumer Financial Protection Bureau outlines actions to address problems in the credit reporting industry. Fixing data accuracy, repairing the credit report dispute process, and cleaning up inaccurate information lead the list.