Guide To Resolve All Your CIBIL Credit Report Errors

A credit report is a comprehensive summary of an individual’s past and current credit cards and loan details. Since the credit score is based on a credit report and is an important parameter that almost all lenders consider while reviewing a loan application process, an error in the credit report can pull down the credit score by a few points.

Typically, a CIBIL credit report contains six sections. These are: credit score, personal information, contact information, employment information, account information and enquiry information. So, one must know how to read credit reports and look for discrepancies.

If any error related to personal information or the terms of the loan is noticed, it must be resolved quickly to avoid any negative impact on the credit scores. Some of the possible errors in a credit report are listed below:

• Incorrect Personal Details:

It includes any wrong information about the applicant's personal details like name, address, age, date of birth, PAN card or Aadhaar details, etc.

• Account Errors:

Information providing incorrect date of account opening, date of last payment, or date of first delinquency can adversely affect the credit score. Mixing an account with another person having a similar name, having a duplicate account in the name of the applicant, reporting an open account as closed or vice versa are some other possible errors related to accounts.

• Fraudulent Transactions:

Credit reports may sometimes indicate unknown transactions in one’s name. It is good to find out such problems on time as it could be a case of identity theft, indicating the need for tightening the security of the account.

• Balance Errors:

Sometimes the credit report can show a discrepancy between the current outstanding balance and the actual amount due. Occasionally, it may show an overdue amount that has already been paid off or default records in payment history even after clearing past payments regularly. If the Days Past Due (DPD) shows anything other than ‘000’ it means that the financial obligations were not met on time.
Here, it must be mentioned that most banks and financial institutions submit data to credit bureaus every 30 to 45 days. So, if an individual gets the CIBIL report within 45 days of pay off or closure of the account, there is a possibility that it may not have been updated in the credit records.

How To Resolve An Error In A Credit Report?

If one discovers an error in a credit report, it should be reported immediately to the credit bureau from which the report has been obtained. In India, there are four credit bureaus, namely CIBIL, CRIF High Mark, Experian, and Equifax. The request to file a dispute with each of the bureaus can be done online or by phone. Alternatively, it can be reported by sending an email.

To resolve a credit report error, one should follow the below-mentioned steps:

Step 1:

First, one must obtain an online dispute form from the respective credit bureau’s official website. After filling up the necessary information in the form it must be sent to the bureau. At this stage, it will be wise to gather and keep ready the documents that are necessary to back up the claim.

Furthermore, at this point of time the applicant must check the credit report from the other bureaus to confirm the same error.

Step 2:

The next step is to inform the individual, company, or organization that provided inaccurate information to the credit reporting company and request them to provide the correct information.

After the dispute application is filed successfully, it will be forwarded to the concerned lender or bank for verification of the applicant’s claim. Banks cross-check the error report and share an audited report with the concerned agency.

If the claim of errors reported are genuine, the banks will correct them internally and share the updated details to the concerned agency. In case of zero-error, the agency sends a revised report to the applicant.

Conclusion

Major errors like a case of mistaken identity can bring down the credit score substantially and may even result in the rejection of a loan application. Even a minor clerical error or a typographical mistake can be a source of wrong information, ruining the chances of getting credit on favourable conditions.

The process to rectify the credit report errors starts by checking and spotting an error and then filing the dispute with a credit rating agency. Once the errors are reported to the credit bureau, the dispute will be investigated. After investigation the necessary changes will be made to the report.

Nowadays, there are some banks that allow customers to check their credit score. While some lenders charge a fee, others provide it for free. IIFL Finance, a leading financial services provider in India, allows customers to check their credit score for free. To do so, just visit the company website of IIFL Finance. The non-banking finance company also offers several other value-added services to its customers while providing personal loans, business loans, gold loans and other credit products via a simple and hassle-free approval process.

FAQs

Q1. How to login with myCIBIL.com ?

Ans. In order to login, you will have to visit the website myCIBIL.com. Then click on 'Get your CIBIL score'. Locate the tab of 'Member Login' and the click on it. Enter your username and password to login to your account and access the report.

Q2. What is the process to raise a dispute?

Ans. You can raise a dispute either via online method or by the offline method. The online method is recommended to those who are looking for a quicker resolution. Login to myCIBIL with your username and password. Under 'Credit Reports' Section, you will find 'Dispute Center'. You will have to click on the option of 'Dispute an Item'. You will be redirected to the 'Online Dispute Form' which you will have to fill up and submit. For offline resolution, you will have to write about your dispute and send it to the official address of CIBIL - TransUnion CIBIL Limited, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400 013.

Q3. How to check the status of my CIBIL score?

Ans. To check the status of your CIBIL dispute, you will have to login to myCIBIL portal and go to the 'Dispute Status' tab. The other option to check the status is to directly call the consumer helpline number: 91-22-6140 4300 to get a status update about the dispute that you have raised.