As an individual, it has become increasingly important to ensure that you are in good credit standing. With access to multiple credit bureaus and lenders’ emphasis on credit reports, stuff is gradually improving in India. Globally, credit reports are much more popular than they are in India. In order to better understand credit reports and credit card status, let’s first examine what they are.
An individual’s credit report contains information about their repayment history, how many accounts they hold, and how many lines of credit they have applied for. Any lender must review these documents before deciding on a loan application or online apply credit card since credit bureaus generate them. Having this report can make a huge difference in whether or not your application is approved and at what terms, so it is crucial.
The CIBIL report contains information on credit history for various loan types. A CIBIL score of at least 850 and a credit report free of defaults are prerequisites for receiving new credit. Lenders typically approve loan applications if the credit score is 750 or higher. As a result, it is important to keep track of your scores regularly. Your score may drop for no apparent reason.
Apparent Reasons of Dropping Your CIBIL Score
Credit Report Errors: Reasons and Solutions
In order to understand why a credit report might contain an error, let’s go over the various reasons that could exist.
The Lender Reports Incorrect Account Information –
Lenders may erroneously send incorrect information to bureaus, thus displaying a closed or disputed account as life.
Ownership of Accounts –
Here, information pertaining to another individual’s accounts is captured.
The Following Information is Personal –
Consumers must provide updated information to lenders in order for incorrect details like contact information, PANs, and telephone numbers to be corrected.
Reporting Errors in CIBIL and How to Fix Them
Information About Your Account or Personal Information
In type errors, there is a typographical mistake in the address, a spelling error in the name, or a mistaken birth date. The following solutions are available:
- CIBIL’s website provides a copy of the credit report.
- Check for errors in your account information and personal information.
- You can submit a dispute resolution form online.
- The credit agency will remove the discrepancy from the report once it has been validated.
Overdue Days
The DPD indicates payment is past due if anything but ‘XXX’ or ‘000’ is displayed. The lender or credit bureau has most likely made a mistake if DPD still shows an amount greater than ‘000’ after you’ve paid the bill. The following solutions are available:
- Find out which of the DPDs on the credit report are inaccurate.
- Fill out an online dispute resolution form to bring it to the credit bureau’s attention.
- A valid claim will be updated with the necessary changes to the report by the bureau.
The Account was Still Listed as Open Even Though it was Closed
You will still be able to see it on your credit reports, even if you have paid off your credit account. There is a good chance that the lender did not inform TransUnion CIBIL about it. The following solutions are available:
- Search the credit report for the closed account.
- Verify that the lender canceled the account and reported it to a credit bureau.
- If the account hasn’t been terminated, provide the necessary information and ask for a No Objection Certificate.
- Corrections will be removed from the report when the bureau receives them.
The Tagging of Accounts is Inaccurate
In the report, there may be an issue with account ownership that causes you to see an account that you do not own. These may have been caused by clerical errors or by unauthorized use of an individual’s identity. Here are some solutions:
- You can resolve disputes online by filling out the form.
- Please allow the bureau a few days to investigate and resolve the issue.
If Information Needs to be Corrected, How can it be Done?
In addition to disputing inaccurate information, it’s also important to keep track of your credit card status. Remember that CIBIL relies on the credit history reported by lenders, so if your credit card account is in good standing and you make timely payments, this information will be reflected in your credit report. On the other hand, if you have missed payments or defaulted on your credit card, this could negatively impact your credit score and make it more difficult to obtain credit in the future. Therefore, it’s important to regularly monitor your credit card status and take steps to improve your credit score if necessary.
It is fairly straightforward to resolve disputes. It is simply a matter of contacting the appropriate bureau and submitting your request along with appropriate proof. It is expected that the lender will respond following receipt of this request from the bureau. Once the bureau has uploaded the subsequent report, it will reflect the revised information if the resolution is in the consumer’s favor. The first step in disputing incorrect credit card status and related information on your credit report should be to contact the credit reporting agency.
Upon receiving the resolution, if the consumer is unsatisfied with the verdict, they may contact the bureau again, which will take up the case with the lender again. Alternatively, the consumer may contact the lender directly.
