Fixing Credit Report Errors Like A Pro

Credit Report Errors

Credit Report Errors

Whether you believe it or not, a credit report plays an essential role in our life by highlighting financial transactions and money management skills. The Credit Information Bureau of India Private Limited (CIBIL) generates this report by evaluating your credit-related information received from various lenders and shows the overall summary of your transaction history. Before processing a loan application, a lender checks the credit report and decides the loan amount, interest rate, repayment tenure, and other factors. If there is an error, the lender will not process any personal loan till you resolve the issue. So, you must check your credit report errors to avoid future hassles. But before you learn the common faults or the ways of fixing them, know what a credit report is and its functions when it comes to your financial health. 

What Is A Credit Report?

A credit report displays all your financial information including, your investing habits, finance managing skills, and all your past transactions. These records are usually collected from the banks or lenders you have interacted with. And after evaluating all your transactional histories, a credit report agency comes up with a credit score that determines your creditworthiness. Depending on your credit score, a lender decides whether to approve your loan application or not, loan amount, interest rate, loan tenure, and other aspects. 

There is one thing you should know that credit reports and credit score are not the same things. Most of the consumers often get confused between these two. Credit reports are generated based on the information provided by financial institutions and showcase your past and present financial transactions, loan details if you avail of any and other financial transactions. A credit score is a three-digit number that the credit rating agency provides. Having a credit score of 750+ is always great, but if you have less score also, there are multiple ways of improving it. But what happens when you have some errors on the report? To make your report error-free, you should review your credit reports every year, especially before you apply for a quick personal loan. If some error is there, bring it to the notice of the credit report agency and fix them immediately. 

Common Types of Errors That Occur In Your Credit Report

  • Inaccurate Personal Information

When you apply for an instant personal loan, make sure you are consistent with your name and other personal information in every financial document like PAN, Voter, Aadhar, etc. There can be some typographical errors that include incorrect spellings,  wrong phone numbers, or addresses. These errors occur in the case of handwritten forms. So, check for credit report errors and get them corrected fast.

  • Wrong Account Details

There can be multiple account errors in the credit report, like – You may find an open account showing closed or vice versa. Even an account may show an incorrect credit limit or maybe the wrong date of account opening/closing. Or your repayments may show late or not done. If all this happens with your credit report, then it can badly affect your credit score. 

  • Data That Doesn’t Belong To You

While checking your credit report, if you find some data or information that doesn’t belong to you, like a transaction or a loan under your name that you never availed of, then take quick action. Without your knowledge, this can lead you to fall into a big debt trap. Also, ensure you have cleared off all your previous debts from the report.

  • Entry Duplication

Having data more than one time on your credit report may comprise duplicate entries, and this may impact your credit report drastically. So, cross-check all the records and do the needful. 

How To Fix Credit Report Errors?

There are three steps to fix your credit report. Check them below – 

  • Step 1: The first step is to identify the credit report error and connect with an agency to dispute that error. Dispute the error online through your phone or website, fill in the form with all details, and attach the required documents. You can send them an application or write an email.
  • Step 2: Connect with the financial institution from where the error occurred. Send them the same details you have shared with the credit reporting agency and ask them to rectify the entries and update the same with the bureau. 
  • Step 3: After submitting the dispute, the concerned person will investigate your request. Meanwhile, you will receive an affirmation mentioning the steps taken by the authority. And very soon you will receive the corrected credit report. Once you get it, it’s your responsibility to check the report thoroughly. In case of delay, you can escalate the matter. 

How To Improve Credit Score?

  • Make sure to pay your credit card payments, loan repayments, and other EMI dues timely. To avoid mistakes, you can set a reminder as well
  • Plan your monthly credit and invest accordingly
  • Review your credit report frequently. This will remove the chances of any incorrect payment or EMI data being recorded in the report.

Wrapping Up!!

Being a responsible person, it’s your responsibility to make your credit report error-free, no matter how small the error is. A single credit report error can bring your credit score down and impact your creditworthiness. So, be careful and take immediate action for all the errors you have on the report. Maintaining it will increase your chances of getting a quick personal loan easily and quickly. The process may seem lengthy but it will bring value to your financial journey!