07-Oct-2017 written by : FSI-Team
There are several factors that impact your credit score. Even if you on your part think that you are doing everything right to keep up a high score, errors and discrepancies can impact your score otherwise. Because of the large amount of data and information that is exchanged between lenders and credit bureaus every day, it is not uncommon for errors to enter your report. If you do not keep a periodic check on your credit report, these very errors will be responsible for pulling down your CIBIL score.
Any financial expert would thus tell you how important it is to keep a periodic check on your CIBIL report to spot errors in your report. Checking your credit report at least twice in a year is highly recommended. With CIBIL providing the facility of one free credit report in a year, keeping a tab on your CIBIL report is easier now. Once you come across any error in your report, you must dispute it immediately.
You can easily raise a dispute on the CIBIL website by following the explicit instructions that are provided on the website. The dispute raised by you is then taken to the concerned lender. The lender then accepts or rejects the dispute. Based on the nature of the dispute you may need to follow up with the lender and urge them to expedite resolution. Once the dispute is resolved, the relevant corrections are made on your report and your CIBIL score reflects the same. The dispute resolution process can take to a maximum of 30 days. An error free report is thus your ticket to a good CIBIL score.
Now let us take a closer look at the kind of errors that can be found in credit reports:
It is important for all individuals to ensure that the basic identity details such as name, address, PAN card etc are specified correctly on the report. Identity errors on a credit report occur in case of common names. Sometimes you may find that your name in a report that does match with the information on accounts. This is a case of an identity mix up that must be disputed and corrected immediately. There may be other incorrect information in your report pertaining to payment dates, credit limits account balances and the likes that need to be verified from time to time for accuracy.
Sometimes, the error may be more serious in nature, where the report belongs to you, but there is one or more loan or credit card account detail that you have not availed of. This may be case of a fraud or an identity theft that must be dealt with without delay. An impostor can wipe off your good credit behaviour and pull down your CIBIL score. For no fault of yours, you may thus be forced to look for a bad credit fix when you are in urgent need of funds.
It is very important to check that the dates alongside the account information is specified correctly on your CIBIL report. For instance, a loan account that you may have closed may still show up as active on your credit report. It is incorrect to assume that old information gets removed from your report on its own. It is therefore a prudent practice to check your CIBIL report once a loan repayment has been completed to ensure that the status of the same is reflected in your CIBIL report as well.
Post the resolution of the said dispute, you can expect your CIBIL report to reflect the changes within a month. Your CIBIL score too will come up as a result. If you are not satisfied with the resolution, you may write to CIBIL and the concerned creditor to re-examine the issue. In most cases though, the creditor corrects inaccurate information when disputed by individuals without delay.