There is a possibility that your credit report has some error! Though uncommon, sometimes wrong information is updated on it. But the good news is that, you can correct a wrong entry on the report.
The credit bureaus in India record the credit history of the borrowers. It includes personal details, loan repayment, credit card repayment, number of credit inquiries, account numbers, account types, outstanding balances, etc. The lenders like banks, financial institutions, credit card companies, etc., report these details to the bureau. The credit bureaus calculate the borrowers’ credit scores based on these details.
There are chances that the lenders send incorrect information to the bureau. This can impact your credit score tremendously. What would you do then? How to fix errors on your credit report?
Fix Errors on the Credit Report: The Step-By-Step Guide
Having a low credit score and facing difficulties like loan approval, high interest rates, etc., can be stressful. It is important to dispute the incorrect information to eliminate the disastrous implications of a credit report anomaly.
Here is the step-by-step guide on how to fix credit report errors and relieve your financial stress.
1. Review your Credit Report
Before you begin removing a wrong entry from your report, it is important to study the report and look for all the errors properly. Get your free credit report from Due Factory and review it for errors. Look for common errors like:
- Incorrect personal information, including your name, date of birth, PAN details, Aadhar details, phone number, etc.
- Wrong credit/loan details like incorrect due amount, account status, repayment pattern, etc.
- Incorrect credit limit
2. Fill out the Dispute Form
Now that you have identified the error, removing a wrong entry in your credit report is time. To do so, you need to file an online dispute form. The form is available on the credit bureau website. Go to the dispute page of the website and fill out the form correctly. Ensure to double-check the details, to prevent the form rejection.
3. Attach Documents
One of the most important answers to how to fix credit report errors is to provide evidence to support your claim. You will have to provide relevant documents that establish the authenticity of the error. Ensure to correctly upload the same so the bureau can investigate and validate the matter.
4. Form Processing and Verification
After you submit the dispute form, you must wait, as the credit bureau will take time to verify the error, the credit bureau will ask your lender to provide fresh details. The credit bureau does not make any changes in the report without verifying the same with the lender.
The credit bureau does not take action if the disputes are frivolous. The bureau will update you whether the dispute holds.
5. The Resolution
It may take around 30 days to correct your credit report. The lenders or banks are expected to come up with a resolution for the dispute within 45 days. Once your issue has been resolved, you will be communicated about it. Again, if you are unsatisfied with the solution, you can raise a new dispute and provide supporting details.
6. Re-Check Your Credit Report
Check whether your credit report is now updated. If you cannot see the update after 45 days, contact the credit bureaus and the lender again.
Wrapping Up
A credit report is essential for getting a loan or credit card. It measures your creditworthiness, so it is essential to have a correct one. Please keep checking credit report frequently to identify discrepancies. Check the pending dues, closed account details, and even personal information to ensure that all the information in your report is correct.
For any support like downloading the credit report, disputing the flaws in the report, knowing how to check credit report for errors, etc., you can visit duefactory.com.
Disclaimer: This article provides a general guide to the subject matter. You should take a professional advice about your specific case.
FAQs
1. Can I correct an error on my credit report?
Ans. Yes, you have the right to dispute errors on your credit report. Fixing an error is essential for having good credit health.
2. Why is it important to check your credit report frequently?
Ans. Review your credit report to check for inaccurate information like personal details, account details, credit length, etc. Checking the credit report often also allows you to check your recent credit status.
3. Why is it important to correct mistakes in the credit report?
Ans. Checking your credit report helps you recognize identity theft, etc. For example, someone may use your personal information, credit card or bank account numbers, etc. Your paid dues on your credit report might wrongly show as unpaid and delinquent. These inaccurate details may decrease your score.
4. What information must I provide to the bureau for raising a dispute?
Ans. You need to provide information like the type of error, personal details, supporting documents, etc., to establish your claim. Explain the error well and ensure to attach all the required documents.
5. How long does the credit bureau take to fix the errors in your credit report?
Ans. The credit bureau may take 30 to 45 days to provide a resolution after receiving your dispute. This time is needed for them to investigate and verify the information with the lender.