WHAT IS A CREDIT REPORT
A credit report is basically like your financial report, a statement that has information related to your credit activities, monetary habits and behavior, and your creditworthiness. It contains your credit score, loan repayment history, missed payments, and the current status of your credit accounts. It also has your data including your name, address, contact number, employment information, date of birth, etc. In India, credit reports are published by the 4 major credit bureaus TransUnion CIBIL (Credit Information Bureau of India Limited), CRIF Highmark, Equifax, and Experian. These are approved by RBI and operate under the rules and regulations of RBI. This report plays an important role for lenders to determine your creditworthiness, assess the risk involved in extending a loan to you, and approve of loan applications.
However, these reports are not completely free from errors and these errors can significantly affect your credit-taking capacity. The mistakes can your related to your factual data such as misspelled name, address, etc., or technical mistakes such as your name being involved in someone else’s loan. Let’s understand how to deal with these errors.
HOW TO GET YOUR CREDIT REPORT
You can get access to your credit report from the Credit Information Bureau of (India) Limited (CIBIL) using the following steps:
- Go to the CIBIL website
- Enter your personal information which includes your name, date of birth, PAN card number, etc.
- Then complete the verification process.
- Pay the fee
You can also get your credit report for free. Regular checking of your credit report ensures that there are no errors in your report and also you are aware of your credit situation and can make decisions accordingly.
WHAT ARE THE CONSEQUENCES OF AN UNTAKEN LOAN ON YOUR CREDIT REPORT
An untaken loan can have serious negative consequences on your credit report and it can tamper your financial situation. Such errors are taken seriously by lenders and banks which can lead them to charge a higher interest rate or even rejection of your loan application. It is advisable to identify these errors at an early stage and resolve them as soon as possible.
SOME COMMON ERRORS ON YOUR CREDIT REPORT
Let’s see what are some common errors that can be there in your credit report.
- PERSONAL INFORMATION
These mistakes include in your identity information such as errors in name, address, contact number, PAN card number, etc. There can be identity theft in accounts that have inaccurate details and accounts belonging to others who have the same name or details as you.
- ERRORS IN BALANCE
These errors include inaccurate matching of current balances and accounts having incorrect credit limits.
- DATA MANAGEMENT ERRORS
These errors can creep up due to proper management of data such as incorrect data after correction and inconsistencies in the accounts of various creditors.
- ACCOUNTING STATUS REPORT
Includes accounts that are already closed but are shown open inaccurately, your name can be shown as an account holder instead you are an authorized user. There can be a double entry of the same debt and inaccurate information related to account opening and closing date, payment date, etc.
HOW TO DISPUTE ERRORS AND UNTAKEN LOANS
In case you have seen error(s) on your credit report and you wish to address them then you can communicate the problem to the information provider or the credit reporting agency. You can send an email to customer care stating your problem and the errors and also providing the correct information.
CONCLUSION
Having an error in your credit score can pose a lot of challenges and can hamper your credit-taking capacity and getting approved for loans. However, it is important to be vigilant and keep a check on your credit report from time to time to ensure that there are no mistakes, and in case some errors creep in. It’s advisable to address them at an early stage by providing evidence to substantiate your claims.
This article is written by Purbasha Parui, a 1st-year law and finance enthusiast from BMS College of Law, Bangalore.
