Resolve Credit Report Errors

Individual credit records, such as payments on loans and credit cards, are maintained by the Credit Information Bureau (India) Limited (CIBIL). Every month, CIBIL publishes Credit Information Reports (CIR) and credit ratings based on the records given by various banks and other financial institutions. Banks typically try to get into individuals’ credit score checks to determine their ability to repay debts.

Outline of Credit Report

If you have a strong credit score, you have a better chance of getting your loan sanctioned by the bank. CIBIL usually assigns a three-digit score and customers’ credit ratings range from 300 to 900. Banks usually give preference to borrowers who possess a credit score of 700 or above as it signifies the good creditworthiness of a customer. They count on a customer’s credit report as it contains information about house loans, personal loans, credit cards, and overdraft facilities, among other things, all major banks examine it to determine a person’s trustworthiness. As a result, it is the customer’s responsibility to ensure a favourable Credit report. Customers should check their credit reports periodically as it helps in resolving credit errors on their credit reports instantaneously by raising disputes.

How To Get Into Credit Score Check?

A credit score check is necessary to resolve credit errors that can affect your credit reports. You can request and examine a free copy of your credit report to check that your personal information is valid and that no account information is wrong or incomplete. By visiting www.annualcreditreport.com every 12 months, you may get a free copy of your credit report from each of the three main credit bureaus.

Why Do You Need to Access a Credit Report?

Members of the CIBIL, such as banks and financial institutions, have access to credit records and actively seek them out. However, there is a reciprocity principle in place at work, with credit reports available only to institutions that give data to CIBIL. Well, a Credit score check can assist banks in accepting or refusing loans, thereby helping in analysing the responsible behaviour of the borrower. However, banks are prohibited from disclosing an individual’s credit report to any other party.

Individuals can view their credit reports, and according to Section 21 of the CIRCA Act 2005, “Any person who applies for a credit facility from a credit institution may request that the credit institution provide him with a copy of the credit information received by the credit information business by such institution.” According to the Credit Information Companies Regulations 2006 Act, the Reserve Bank of India (RBI) has set a fee of Rs.50 for this purpose.

What Information is Available in the Credit Report for Credit Score Check?

The following categories of information can be included in your credit report:

Identifying information: Personal information such as your name, address, date of birth, and Social Security number is included in this portion of your credit report. Credit scores are not calculated using the identifiable information in your credit report. When you have to resolve credit errors, this information needs to be entered at certain places to resolve the dispute.

Inquiry information: Soft and hard inquiries are the two types of inquiries. Soft inquiries can occur due to checking your own credit reports. For Instance, companies giving you pre-approved credit or insurance offers, or your present lenders and creditors conducting periodic account reviews. Credit scores are unaffected by soft queries. When a firm or individual, such as a credit card company or a loan servicer, reviews your credit report because you applied for credit or service – such as a new loan, credit card, or mobile phone contract – it is known as a hard inquiry.

Credit account information: The sort of accounts (for example, credit cards, mortgages, student loans, and auto loans), the date those accounts were started, your credit limit or loan amount, account balances, and your payment history are all provided by your lenders and creditors.

Bankruptcies: Your credit report includes details regarding public bankruptcy records, including the filing date and chapter (type of bankruptcy).

Collections accounts: This contains accounts turned over to a collection agency because they are past due. These include accounts with doctors, hospitals, banks, retail outlets, cable companies, and mobile phone providers.

What Factors Help You Maintain Your Credit Score?

The following are some tried and tested measures to maintain your credit score ratings:

Timely payment of bills: This isn’t limited to credit cards; late or missed payments on other accounts, such as cell phones, can be reported to credit agencies, affecting your credit score. If you’re experiencing problems paying a bill, get in touch with your lender right away. Even if you’re disputing a charge, don’t miss payments.

Clear your debts: Pay Off your debts as soon as possible.

Maintain a low credit card balance: Your credit score may be impacted if you have a bigger balance than your credit limit.

Fill out a credit application judiciously: Applying for many credit accounts in a short period of time can harm your credit score.

Maintain a regular review of your credit reports: Request a free copy of your credit report and deal with regular credit score checks to ensure that your personal information is right and that no account information is incorrect or incomplete. Each of the three national credit agencies is required to provide you with a free copy of your credit report every 12 months. You may keep track of your reports all year by requesting a copy from each one every four months. Your credit score will not be affected if you check your own credit report or score.

Who Supplies Credit Reports In India?

The leading credit information bureau in India is CIBIL (Credit Information Bureau India Limited). Equifax and Experian are two other major companies in India. The three bureaus listed above are the ones that provide credit scores.

Common Errors Found in the Credit Report after Credit Score Check

Credit report inaccuracies can harm your credit score in numerous ways, but they almost always lower your credit score. Furthermore, your credit report is a reflection of your financial health. To avoid financial difficulties, you should always maintain a credit score check and keep track of the inaccuracies and resolve credit errors in it.

Errors in Personal Information

Credit agencies have been known to mistake one consumer identity information for another or disclose false addresses on credit reports. Identity or personal information errors are the most common causes of these events. Here are a few of the most typical identity mistakes to watch out for:

1. The name is incorrect.
2. Your name has been misspelt.
3. The middle initial is incorrect.
4. Incorrect contact information

When you move to a new house, alter your name, or use a new phone number, you should always update your basic personal information.

Accounts that have been misrepresented

Check your credit report for the number of open accounts. In some cases, a retail credit card or loan may be opened in your name even though you were not involved. It could be the result of a clerical error or identity theft. When another customer’s name happens to be the same as yours, a clerical error occurs. When someone else’s information appears on your report, you’ll quickly discover these mistakes. Because these errors might harm your credit usage ratio and credit score, therefore, you should notify your creditor as soon as possible. These unknown accounts could suggest that your identity has been stolen, either through your name or your social security number.

Errors in Account Reporting

Errors can also occur in the status of your accounts. Missed and late payment dates are among the most common mistakes. You may wind up defaulting on your payments if you take them for granted. Worse, these mistakes can drastically lower your credit score.

1. An account that has been opened is reported as closed, and vice versa.
2. Account payments that are made on time are recorded as late or delinquent.
3. Incorrect dates of late payments are reported.
4. Incorrect account opening or end dates.
5. Improper balance
6. The credit limit is incorrect.
7. A primary account holder is displayed instead of an authorised user, or vice versa.
8. Debts that are seven years old or older

How Do I Know When It’s Time to Report a Mistake on my Credit Report?

When you conduct your credit score check and notice errors in the report, you must resolve credit errors first. Get the report from all three credit bureaus such as Equifax, Experian, and TransUnion. This will help you decide whether the issue is in one or all of the bureau reports. If the same inaccuracy appears on all three credit reports, then it is obvious that the lender made a mistake. The problem will be related to a specific financial institution and you should immediately notify them about the same.

How Can You Resolve Credit Error?

A mistake on your credit report might affect your credit score and make it difficult to open a new credit account or obtain a loan. Here are some measures you can take by which you can resolve credit errors:

STEP 1 – Acquire a duplicate of your credit report

A credit score check of your credit report is a must at first. You have the right to a free copy of your credit report from any nationwide credit reporting firm — Equifax, Experian, and TransUnion — once every 12 months under the Fair Credit Reporting Act (FCRA). Visit AnnualCreditReport.com, call 1-877-322-8228, or fill out the Yearly Credit Report Request Form and submit it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281 to acquire your free annual credit report. Do not contact each of the three national credit reporting agencies separately.

STEP 2 – Examine your credit report for any mistakes

Learn as much as you can about your credit report. Your credit report can be divided into four categories:

1. Personal data includes your name, present and past addresses, employer, and so forth.
2. Bankruptcies, repossessions, and foreclosures are all public records.
3. Open and terminated credit accounts, as well as payment history.
4. Recent credit applications will display on your report and will stay there for 24 months.

Is there anything in the report that shouldn’t be? Delinquencies and negative marks significantly impact your FICO score, accounting for 35% of your total. Personal information errors rarely influence your credit score, but they may indicate a reporting problem or even identity theft. So, a credit score check of your credit report must be made. 

STEP 3 – Take Action and File a Complaint

If you discover an inaccuracy on your credit report, contact the credit agency from which you obtained it and ask for an alteration and modification. For precise guidelines and details on how to file disputes with each agency online, by phone, or by mail, go to the websites of TransUnion, Equifax, and Experian.

• Step 1: Inform the credit reporting company of any information that you believe is incorrect. Have all of the necessary paperwork to back up your claim.
• Step 2: Inform the person, company, or organization who gave the credit reporting business inaccurate information about you that you are disputing an item on your credit report.
• Step 3: Check the other bureaus’ credit reports to see if they have the same problem so you can register a dispute with them as well.

How to Maintain Vigilance Regarding Your Credit Report?

Keep maintaining your credit score check so you can resolve the issues instantaneously if something unexpected transpires. Your credit report contains all of your credit histories and reviewing it once a year will help you see any anomalies that could be lowering your credit score. You may also join up for credit monitoring services to keep an eye on your credit profile and access your credit score regularly.

When Will a Credit Report Inaccuracy be Repaired and Updated?

CIBIL will receive data/information from most credit institutions every 30 to 45 days. It will next check this information with the credit institution, and after validation, CIBIL will make modifications. If you file a complaint with CIBIL, 30 days might be required to resolve credit errors from your reports. By filing a complaint with the appropriate credit bureau, you can have your inaccuracies corrected.

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