What are the Most Common Credit Report Errors to Repair?

What are the Most Common Credit Report Errors to Repair?

Credit Report Errors To Look After

The Credit Report, also known as Credit Information Report (CIR) contains the entire history related to loans and credit cards in your name; your previous payment history, credit decision, default(if any) and settlement of loan & credit card accounts. Having a good credit score becomes mandatory to get loans as well as credit cards easily. The red marks in your report compel the lenders to think twice before approving a loan or credit card application. 

But what if those red marks don’t rightfully belong to you? What if those marks aren’t genuine? Can you fix them? We make things easier for you by proving you a short guide on how to check credit report. About the errors which you should never ignore and what steps you need to take to correct those errors in your credit report? An individual can fetch one free Credit Report annually and review the same thoroughly. 

What is a Credit Report?

A credit report is a consolidated document that reflects the complete credit history of a borrower over a significant period of time. This single document further assists in evaluating the creditworthiness of an individual or corporate entity. The report includes the following details:

  • Personal Details ( Name, Age, Gender, Address, etc)
  • Number of enquiries made by potential borrowers on receipt of the loan/credit card application
  • Records of previous and current loans with payment history
  • Any defaults on loan/credit card payment
  • Loan/Credit card settlement data

Popular Credit Bureaus in India

Mainly 3 credit bureaus in India have gained popularity. 

  • TransUnion Credit Information Bureau (India) Limited (CIBIL)
  • Experian
  • Equifax

These bureaus are also known as Credit Rating agencies that collect the financial data of an individual from many banks and NBFCs monthly. Soon after receiving the data, these agencies start evaluating the credit profile of an individual on various parameters and give them a credit score. This score ranges from 300 to 900 and represents the financial history of an individual in front of the lenders. 

How to Check Credit Report?

Follow the steps below to check your credit report. 

Step 1:Go on the site of your credit rating agency/bureau

Step 2:Create an account 

Step 3: Answer some questions for identity verification

Step 4: See your Credit Report Online or Download the same 

Now that your report is in front of you, it would be advisable to thoroughly check each and every detail mentioned in the same. There are a lot of errors or mistakes that one should never ignore to keep his credit report healthy. After all, an error-free credit report is always the perfect gateway for a hassle-free financial journey.  

Top 9 Credit Report Errors to Look After

Possible Credit Report Errors/Mistakes That You Should Never Ignore

1. Incorrect Reporting of Outstanding Dues: Sometimes the lenders or bankers report outstanding balance in your name.  Even if you have been paying or already paid dues. The incorrect entries of dues mentioned in your report can damage your credit score and makes your credit profile weak in front of the lenders. So, check the same to avoid such a situation. 

2. False Entry of Late Payments: The payment histories such as late payments affect majorly your credit score. Be careful, in case you find a subconscious entry of the same in your report. Late payments don’t create a good impression on lenders. And, makes your credit profile looks risky for future borrowings. So, ensure not to have a false entry of late payments in your report. 

3.Spelling Mistakes & False Personal Details: Another mistake is the spelling error be it in your name, PAN or address. Check your report briefly to detect any sort of spell error. Also, check your report for false, incorrect and outdated personal details as these mistakes someway or the other will affect your credit score. And, make you face a loan or credit card rejection.

4.Signature Mismatch:Check your report for signature mismatch as it is not considered good. A signature not only hampers the value of credit report but lessen your chances of loan/credit card approval in the future. Yes, it makes your profile look less worthy, hence you may face rejection in the future. 

5.Pending Document: In case, any KYC document is pending for you to submit, do that ASAP. The more you delay, the bigger the problem it will create for your credit profile. The pending document will put a dent on your report, making you less eligible for future borrowings. 

6.Unfamiliar Account Activity: Sometimes, you detect an unfamiliar account of another customer appears in your report. This may happen due to similar names, address and even incorrect account details. If you find the same problem in your case, immediately inform your lender to fix it.

7.Beware of Duplicate Entries: There is a possibility of duplicate entries that may occur in your credit report. Especially in the case of a balance transfer, where your outstanding balance from one lender is transferred to another(new) one. 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. So, do check your report to avoid such a situation. 

8.Linking of Unwanted Account: Sometimes frauds steal your confidential information and spend money in your name. They can apply for new credit cards and any kind of loan in your name. So, it is important for you to do credit report check to know whether your account has been linked to an unwanted account or not. In case you find any unwanted activity, report the same immediately to the concerned bureau and get it corrected.

9.Look for a Loan/Credit Card Closure: In case your loan or credit card account has already been closed. And, there is no transaction happening from that account, it is important for you to check the same in your credit report. Make sure your account is not only closed in the report but the closure should also have NOC (No Objection Certificate) mentioned in the report. Yes, it is advisable to take a NOC certificate from your respective lender soon after closing your loan/credit account. 

How to Fix Credit Report Errors/Mistakes

The very first thing to do is to notify the concerned credit bureau. Explain your bureau 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.

Quick Tips:

Opt for Fraud Alert: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. 

Go for Credit Freeze: Opt for credit freeze as it prevents the credit bureau from sharing your credit report with any person or entity without your permission. Without a credit report pull, no one can steal the details of your account, hence identity theft can be prevented. 

So next time while checking your credit report, do not miss and ignore these common credit report errors for a hassle-free financial journey. 

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