HOW TO FIX ERRORS ON YOUR CREDIT REPORT
Checking your credit score and analyzing your credit report are two key steps in maintaining or improving your credit score. If you find that your credit score has dropped, it’s important to examine your credit report carefully and figure out the cause behind it. Sometimes, you could discover a delinquent account bringing your credit score down or a mistake on your report, or fraudulent behavior. If you’ve noticed any of these errors in your credit report, it’s essential to fix them as soon as possible. Even if your credit score remains stable, it’s a good idea to go through your entire credit report once a year to ensure everything is right.
What is Credit Report?
A credit report is a consolidated financial report that contains the consumer’s CIBIL Score and credit summary, as well as personal details, contact information, employment data, and loan account information. Banks and other financial institutions use credit reports as one of the most important factors when extending credit or loans.
Any incorrect details or mistakes on your credit report will negatively impact your ability to obtain credit in the future. Hence, it’s crucial to double-check your credit report for mistakes.
Note: It is important to note that lenders consider both the CIBIL Score and Report to assess a person’s loan eligibility.
What Are The Different Types Of Errors In CIBIL Report And How To Identify Those Errors?
There are two types of errors that might be present in your CIBIL report i.e., minor or major. A minor error may be as simple as a misspelled name or an incorrect date of birth. These errors are easier to resolve. The main concern is the second form of mistake, which may be anything as extreme as a loan that was incorrectly credited or an outstanding credit balance.
In such circumstances, there would be a sudden drop in your CIBIL Score and it may create serious issues while applying for loan or credit. Hence, take a first move by visiting the CIBIL website and download your credit report. After you’ve successfully downloaded your credit details report, check for the following potential errors:
Incorrect balance: It’s important to double-check your credit report’s current credit balance, which must match the actual outstanding balance on your credit card or loan. This form of error in your CIBIL report should be taken into consideration because most of the people might overlook it.
Inaccurate personal information: There are often errors in the applicant’s name, gender, address, or even contact details. While reviewing the CIBIL report, make sure to check it thoroughly and double-check that each entry is correct. You can also double-check that the PAN card number and the Aadhaar card numbers are correctly updated.
Current balance not updated: The most common error in a credit report is the outdated current balance of the applicant. For example, when you pay your loan or credit, there will be always a gap between the time of payment and the submission of your credit history to the CIBIL agency. Due to this time lapse, these errors are going to be visible in your cibil report.
Incorrect overdue: The amount you owe your loan or credit card provider is referred to as overdue. There may be incorrect references of overdue for loans that you did not take. As a result, it is important that you carefully read the report to identify any such incorrect overdues, as they can have a negative effect on your CIBIL score.
Outstanding loans: While reviewing your CIBIL report, you must go through the section of the outstanding loans or the amount that you are due to pay and ensure that the numbers are mentioned correctly. If there are any variations in the amount, you could be classified as a loan defaulter.
Duplicate account: Sometimes, there may be several accounts registered under your name on the CIBIL report. If you don’t own those accounts, you should consider it as a major error as they may impact your credit score.
In addition to these, look for dates, numbers, and parties that are inaccurate to ensure that all of the details in your CIBIL report are valid and accurate. However, if any of the above issues have been found in your report, you must start the process of addressing them as soon as possible.
Let’s See How To File A CIBIL Dispute Request
To file a dispute, customers must fill the online dispute form, which is available for free on the official CIBIL website. Customers must have a control number to use this service. This control number will be available in top right of the credit report. With the help of control number, CIBIL can identify the credit report (about which the customer has raised a dispute).
Following the submission of the online dispute form, CIBIL will double-check all the details with the concerned banks. Once the form is submitted, customers will receive an email update on the status of their request (dispute). Later if the dispute is resolved, customers will receive an updated report. If customers are dissatisfied with the outcome of the first dispute request, they may file a second one. Also, customers can write directly to Credit Information Bureau (India) Ltd, Hoechst House, 6th Floor, 193, Backbay Reclamation, Nariman Point, Mumbai 400 021.
The Credit Information Report cannot be modified by CIBIL (CIR). All disputes are forwarded to a credit agency, which determines if the claim is valid. The credit report will then be revised after the modifications have been checked by the concerned credit institution. Whenever a dispute is settled, the customer is informed.
CIBIL takes up to 30 days to settle any dispute, depending on how long the credit institution takes to respond with the necessary details. After receiving information from a credit institution, CIBIL typically takes seven days to update the details. Customers can request a new credit report after CIBIL has corrected all mistakes, according to experts.
FAQs on How to Resolve Credit Report Errors
How do I know when to report an error on my CIBIL score report?
Once you’ve found the error, review your credit bureau reports from Equifax, CRIF Highmark, and Experian to see if it’s visible in one or more of them. If the same error appears on all four credit reports, the lender made a mistake. The problem may be related to a particular bureau, and that bureau must be informed the same.
How many days it will take to resolve errors in the CIBIL report?
Most of the credit institutions will submit data/ information to CIBIL for every 30 to 45 days. If you file a dispute with CIBIL, it might take nearly 30 days for issue to be resolved. By filing a complaint with the appropriate credit bureau, you will get your errors corrected. It will then check this information with the credit institution, and changes will be made after authentication.
Why is it essential to resolve errors that appear on my credit report?
It is necessary to identify and correct errors in your CIBIL report in order to maintain a healthy credit profile and a strong credit score. Any error that is not fixed will cause your credit score to drop.
How can I file a dispute with CIBIL regarding my credit report?
By registering on the MyCIBIL portal, you can file a complaint with CIBIL. You can then access your CIBIL report and submit requests via the TransUnion CIBIL website.