Credit Report Errors: How to get errors fixed in your credit report? | The Financial Express

Credit Report Errors: How to get errors fixed in your credit report?

You can’t do much to stop the wrong information from getting included in your credit report, but it’s in your hand to correct it quickly once you know it.

Credit Report Errors: How to get errors fixed in your credit report?
You should report the discrepancy to the credit bureau and ask them to rectify your report.

Despite regularly doing multiple transactions on our credit card, we tend to ignore going through our credit report every month. A credit report is one of the most important documents. It decides whether your loan will get approved or rejected. The interest rate on most loans is now linked to your credit report, so any discrepancy in your credit report can easily spoil your borrowing experience.

Therefore, you must access your credit report regularly and carefully review each detail mentioned. Let’s find out the steps to get errors fixed in your credit report.

What Should You Check?

A credit report consists of information related to your credit activities, such as a record of your loan repayment, credit card repayment, etc. While reading your credit report, you should look at your loan account details, loan repayment frequency, credit card repayment record, enquiries for loans, enquiries for credit cards, number and types of accounts, your name, addresses, email ID, mobile number and public information such as foreclosure or bankruptcies.

Types of discrepancies you may find

The credit report can help you find the discrepancies or errors and frauds such as a loan, credit card or bank account operated in your name. When reading your credit report, you should look at your addresses, mobile numbers, PAN detail, etc. You should also minutely check the list of bank accounts with their account number and the status of open or closed accounts.

Also Read: How can your credit card help you cut travel costs?

Verify the details related to the EMI repayment

You need to take immediate action if you notice discrepancies such as a new debt that you have never taken, loan enquiries in your name, default in a loan despite servicing the EMIs on time, incorrect EMI frequency, mistake in the address, name, mobile number or email ID, incorrect loan figure, etc. Now, it’s essential to understand that the discrepancy will not disappear; you need to take a serious action to correct it. So, here’s how you can get the information on your credit card updated.

What action should you take?

You should report the discrepancy to the credit bureau and ask them to rectify your report. Check the credit report of different credit bureaus if the discrepancy is there in every report. If multiple reports show a discrepancy, report it to all the concerned credit bureaus. If you have supporting documents, attach the same while reporting to the credit bureaus. Next, contact the bank/institution whose information needs to show correctly in your credit report. Inform them about the issue and that you have reported it to the credit bureau.

To file for dispute resolution, you can visit the credit bureau’s website and follow the step mentioned. For example, if you want to initiate a dispute on the CIBIL website, click on the ‘Raise Dispute’ link under the credit report section, fill out the dispute form, select the appropriate section of the report that you want to dispute and submit. The dispute section will be marked ‘Under Dispute’. If the dispute is accepted, corrections will be made, and the ‘Under Dispute’ mark will be removed.

Usually, the correction takes around 30 to 45 days to get resolved; however, it may take more time, depending on the extent of discrepancies. If you are not satisfied with the resolution provided by the credit bureau, you may file another dispute.

Adhil Shetty, CEO, Bankbazaar.com, explains, “As a rule of thumb if you use any form of credit, you should do a free monthly check of your credit score. Self-checks do not hurt your score. It’s a good habit to have. At BankBazaar, we have the Credit Strong tool, which encourages our co-brand credit card users to pay their bills on time and take the prescribed steps to improve their scores. Monthly checks have multiple benefits. Firstly, you can track the impact of your credit use on your score. Secondly, you can spot and fix errors in your credit report that can potentially damage your score. You can report these errors to your lender, who will verify your claims and report the correct information to the credit bureaus. Reading your report, you can keep a tab of all your credit relations such as loans and credit cards – even those you’ve closed.”

Things to keep in mind

If a discrepancy in your credit report is related to fraud, like a loan in your name which you had never applied for or due on a credit card which you have never used, then you need to deal together with the lender/card company as well as the credit bureau. Once your credit report is corrected, you must verify it from the credit report issued by different credit bureaus.

You can’t do much to stop the wrong information from getting included in your credit report, but it’s in your hand to correct it quickly once you know it.

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First published on: 30-11-2022 at 10:41 IST