What are the most common Credit Report errors to repair?

Credit Report Errors To Look After

Credit Report contains the entire history related to loans and credit cards in your name; your previous payments history, credit decision and default or settlement of loan accounts. Having a good credit score becomes mandatory to get the loans easily. The red marks in your report compel the lenders or bankers to think twice before sanctioning the loan application.

But what if those red marks don’t rightfully belong to you? What if the red marks aren’t genuine? Can you fix them? We make the things easier for you by proving you a short guide of how to check the credit report. About the errors which you should never ignore and what can you do if you find them in credit report?

 How Can You Check Your Credit Report

  • Everyone has three reports from each of the 3 credit bureaus which are Experian, Equifax and TransUnion CIBIL. Moreover, everyone has a benefit of one free credit report per bureau per year. Go on the site, create an account and answer some questions of identity verification. After that you will be presented with your credit report.
  • Since, your credit score is based on the data in your credit report it is necessary to double- check every important details. However, it is hard to maintain all the three credit reports. Still, you can check your credit report from the 3 major credit bureaus of India. In case you find any error on all the credit reports then you’ll need to dispute it separately with each credit bureau, as they run separately from one another.

Mistakes Found On Credit Reports

  • Sometimes the lenders or bankers report outstanding balance in your name.  Even you have been paying the dues on time. They subconsciously report incorrect credit activity. These incorrect payment histories such as late payments or dues damage your credit score. As paying bills on time make a good impression on lenders. They start considering you a trustworthy customer.
  • Another mistake is filling the wrong personal details such as incorrect spelling of your name, address and PAN. However, these mistakes don’t affect your credit score. Still, the can create a problem such as the rejection of your loan and credit application. Mismatching between your documents is not considered good. Therefore, you need to be cautious while handling the important documents.
  • Sometimes, you detect an unfamiliar account of another customer appears in your report. This may happen due to the similar names, address and even incorrect account details. If you find the same problem in your case immediately inform your lender to fix it.
  • Many times when you ask the banks to increase your credit limit they make delay in transferring this information to the credit bureaus. On the other hand, you start spending more through credit card which ultimately increase your credit utilization ratio. Due to this, your credit score drops drastically. 
  • Duplicate entries can appear in your credit report when you balance transfer your loan from one bank to another. Often your outstanding is shown twice, both against your present and former lenders’ names, doubling your actual debt. This can drastically impact your credit score.
  • Sometimes frauds steal your confidential information and spend money in your name. They can apply for new credit cards and any kind of loans in your name. They can even withdraw as much amount as they like from your bank account. They can use your health insurance to take medical care. Moreover, they can put your information on any website even to criminals.
  • In case you have paid your outstanding balance of loans, take the loan closure certificate or letter from banks to keep as proof record that you have no further obligation to pay. Sometime banks takes time to update the credit bureau about the closure of loan account.

These are the errors which can appear on your report but still you can fix them. The very first thing to do is to notify the credit bureau. Explain them the errors on your report. You can dispute them online or by phone. But the best option would be writing. Remember to include your contact information. If you detect that you have been targeting by the identity frauds then put a fraud alert on your account. It can happen by requesting the credit bureaus but you have to give then the proper explanation. The initial alert will last for 90 days. If anyone applies for new credit under your name during that time period then it will alert the credit bureaus. 

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