Credit reports are important; they carry your credit history and give a picture of your overall financial health and credit worthiness. It is important that you try and follow the simple yet powerful rules that let you have a healthy credit score. Paying on time, not displaying credit hungry behavior, having a balance between secured and unsecured loans, not being over dependant on your credit card are ways that can help you remain credit healthy. However there may be times when your credit score may be in the red due to no fault of yours. This could be due to an error reflected in the report. Here we discuss how to clear CIBIL issues if need arises.
Errors that Can Occur in the Credit Report
There can be various types of errors in the credit report; all types of errors will not impact the score of an individual. However regardless of the fact whether they impact the score or not they should be corrected at the earliest.
There can be an error related to your personal data (address, contact information, PAN etc), errors can related to loan ownership are possible which means a loan that does not belong to you is included in the CIR. It is possible that the last installment for your loan or credit card payment is not updated or the overdue amount of a loan/s mentioned is not accurate or an overdue amount is mentioned which is not accurate. Sometimes the status of a loan may be mentioned inaccurately too.
Fixing Errors in Your Credit Report
It is important that you check your report regularly so that you can be aware of your credit health and also correct errors if any. You have the facility of accessing free credit score online so that you can be pre-emptive about your credit health. If you access your CIR and realize that there is a mistake in it you can file an online complaint with CIBIL to resolve the dispute and fix the error. A nine digit number known as the control that is mentioned at the top of the report is crucial when filing a complaint. This helps the rating agency in identifying the CIR about which the dispute has been raised.
Once the complaint is raised the credit rating agency will take the requisite action on it. All credit rating agencies just collate that data that is sent to them by various financial institutions, they are not authorized to make any changes in the data. Thus when you spot an error and report it to the agency, the agency will get in touch with the concerned lender to verify the accuracy of the received information. It usually takes around 30 days for the credit agency to get in touch with the concerned financial institution and get the issue sorted but it could take less or more depending on how quick or slow the concerned FI is.
Once the information is received the customer is informed and the necessary changes are made in the CIR (if any). It takes seven days for the report to be updated and it is advisable for you to take a fresh CIR to see if the necessary changes have been made. In case you are not satisfied with the resolution you can raise the dispute again with the credit agency which will go ahead and check once again with the concerned institution and verify the information received. You have the option of writing to the credit agency also in case you do not want to follow the online route.
So do keep checking your credit reports regularly and if you do spot an error in it however insignificant make sure to get it rectified at the earliest. The above steps can help you do the same.