Checking your credit score on a regular basis and reviewing your credit report annually are two important steps that can help you maintain or improve your credit score. If you notice that your credit score has dropped, it is critical that you examine your credit report carefully to determine what caused the drop. You may discover that a delinquent account is dragging you down, that there is an error on your report, or that there is fraudulent activity. Even if your credit score remains stable, it is a good idea to review your entire credit report once a year to ensure that everything appears to be accurate.
If you discover a mistake or error on your credit report, you should act quickly to correct it before anyone uses your faulty report and score to make a decision about you.
Types of errors in your credit report
There are various types of credit report errors. However, the following are some examples of common errors in your credit report that you should be aware of:
- Errors in identity, such as an incorrect name, phone number, address, or PAN number
- Identity information is mixed up with someone who has the same or a similar name.
- An account that has been closed but is still being reported as open
- A new account does not appear at all.
- Accounts that have been reported incorrectly as defaulted
- Incorrect EMI payment date or incorrect display of late payment
- An account that is listed with multiple creditors.
- displaying the accounts that are very old
- Account balances that are incorrect
- Incorrect credit limits
It is important to note, however, that any type of information update will take at least two months. As a result, an account that is less than two months old may not appear in your report. In addition, an account’s balances may be incorrect because it has not yet been updated.
How to file a CIBIL dispute request
Customers must complete an online dispute form, which is freely available on the official CIBIL website. For this purpose, customers must have a control number. Once a CIR is generated, a control number, a nine-digit number found on the top right of the credit information report, is generated. It is important because it allows CIBIL to identify the credit report (about which the customer has filed a dispute) using the control number.
Following the submission of the online dispute form, CIBIL will confirm all details with the relevant banks. Customers will receive an email informing them of the status of their request (dispute). Customers will receive an updated report if the dispute is resolved. Customers may initiate a second dispute request if they are dissatisfied with the outcome of the first. CIBIL will then re-verify the information with the creditor. Customers may also write to Credit Information Bureau (India) Ltd at Hoechst House, 6th Floor, 193, Backbay Reclamation, Nariman Point, Mumbai 400 021.
Review your credit report and identify errors
Learn about your credit report. Your credit report can be divided into four categories:
- Personal information such as your name, current and previous addresses, employer, and so on.
- Bankruptcies, repossessions, and foreclosures are all public records.
- Open and closed credit accounts, as well as payment history
- Inquiries: Recent credit applications will appear on your report and will remain there for 24 months.
Is there anything reported that shouldn’t be? Delinquencies and derogatory marks have a significant impact, accounting for 35% of your FICO score! Personal information errors usually do not affect your credit score, but they may alert you to a reporting problem or identity theft.
Take Action – File a Dispute
If you discover an error in your credit report, you should contact the credit bureau from which you obtained it and request a correction. Visit the websites of Transunion, Equifax, and Experian to get specific instructions and details on how to file disputes with each bureau online, by phone, or by mail.
Step 1: Inform the credit reporting company of any incorrect information. Have the necessary documents to back up your claim on hand.
Step 2: Inform the individual, company, or organization that provided inaccurate information about you to a credit reporting company that you are disputing an item on your credit report.
Step 3: Check your credit report from the other bureaus to see if they had the same error and file a dispute with them as well.
Keep an eye on your credit score so you can act quickly if you notice a sudden change. Your credit report contains all of your credit histories, and reviewing it annually will help you spot any discrepancies that may be lowering your score. You can also sign up for credit monitoring tools to keep an eye on your credit profile and access your credit score on a regular basis.
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