Mistakes in your credit report? Follow these 6 key steps to get them rectified soon

Getting mistakes on your credit report rectified is important to maintain your financial health. For example, outstanding bill of one credit card may be reflected in your credit report, while the credit card was not issued in your name. 

So, you must request the correction to be made by submitting the necessary documents. Getting a mistake rectified entails a number of steps.

These steps include the following:

Get credit report: Borrowers are entitled to one free copy of your credit report from each of the major credit bureaus such as CIBIL every 12 months. You can request these reports online by contacting the credit bureaus directly.

Review the report: It is vital that you carefully examine your credit report from each bureau to identify any errors. Common mistakes include incorrect personal information, accounts that don't belong to you, accounts with inaccurate balances or payment statuses, and fraudulent activity.

ALSO READ: A high CIBIL score offers 7 key advantages to borrowers

Document errors: It is recommended to make note of any errors you find on your credit report. Keep copies of documents such as billing statements, correspondence with creditors, and any other evidence that supports your claim that the information on your credit report is incorrect.

Dispute errors: If you spot errors on your credit report, you must dispute them with the credit bureaus that provided the report. Each credit bureau has its own process for disputing errors, but generally, you can initiate a dispute online, by mail, or by phone. 

When disputing errors, make sure to identify the inaccurate information and provide any supporting documentation.

Contact the lender: In some cases, the error on your credit report may be the result of incorrect information provided by a creditor or lender. In such a case, the borrower should contact the lender directly in order to dispute the error and request that they correct it with the credit bureaus.

Follow Up: Credit bureaus are supposed to investigate disputes within a limited timeframe and to inform you of the results of their investigation. If the dispute is resolved, the credit bureau will update your credit report accordingly. 

In case the dispute is not resolved, the borrower has the right to add a statement to credit report giving your side of the story.

Frequently Asked Questions:

Does checking your credit report affect your credit score?

A short answer is, it does not. In fact, it  is advisable to keep checking the score from time to time for accuracy.

What is the key advantage of debt consolidation?

It leads to fewer accounts as multiple loans are converted into one loan, which is viewed favourably by the credit scoring model.

ALSO READ: Planning to borrow money? This is how banks interpret your credit score

Can debt consolidation have negative impact also?

Debt consolidation can have both positive and negative effects on your credit score, based on how you manage the same. 

Can debt consolidation affect credit utilisation ratio?

If you use a debt consolidation loan to pay off multiple debts, your overall credit utilisation ratio may decrease, thus positively impacting  the credit score.

What is a hard inquiry?

When you apply for a debt consolidation loan, the lender may perform an inquiry on your credit report known as hard inquiry.