How To Correct Your CIBIL Report Mistakes

Loan Management Tips

7 February 2023

How To Correct Your CIBIL Report Mistakes

Having a good credit score is extremely critical. After all, it works as a deciding factor for banks and financial institutions while providing you with a loan or a credit card. That’s not to say it’s perfect, though. Sometimes, you might receive a wrong credit score or there might be a mistake in your credit report. But how to report wrong credit score?

It is really not impossible to correct credit report mistakes if you know exactly when and how to resolve them, but it is always recommended to check your credit score well in advance as there is no way you can correct the report at the last minute. 

Even after you spot the errors in your credit report, it might take a while for the organisation to resolve your dispute as they have a certain set of standard procedures to follow. So, let’s find out how to correct your credit report.

How to Spot Credit Report Errors

The error on your credit report card can be either a minor one, such as a misspelt name, wrong date of birth, etc., or a major one, such as a wrongly credited loan or an outstanding credit balance. The minor ones are small mishappenings that can be resolved quickly without a lot of hassle. 

On the other hand, major issues could pose a serious problem, especially if you have applied for a loan or a credit card. 

You first need to download the credit report from the credit website and should  look for possible errors such as:

  • Inaccurate personal information

Sometimes, your personal information on the credit report, such as name, age and contact information, could be either misspelt or missing. While going through your report, you have to make sure all the details entered are correct. You should also verify if the entered Aadhar number or PAN number is correct. 

  • The current balance is not updated

One of the most common mistakes in your credit report is outdated current balance information. This is because there is always a gap between the payment time and submission of your credit history to credit and as a result, these errors occur.

  • Incorrect overdue

Overdue is the amount that you owe your credit card provider or your loan. There are possibilities of wrong mentions of your overdue. Due to their ability to damage your credit score, it is vital for you to double-check your overdue amount, always.

  • Outstanding loans

You must check for your outstanding loans and the amount that needs to be paid. If the loan has been cleared and your credit report says otherwise, you will have to file a complaint immediately. To have a good credit score, you must always make sure you avoid debts

  • Duplicate account 

There is a slight possibility of more than one account registered in your name. If you are not the account holder of those accounts, you must consider the issue to be serious as its transactions might impact your credit score.

In general, you should look for incorrect figures of amount, incorrect dates or due dates and must ensure that the information present in your credit report is correct. By cultivating good financial habits, you will be able to avoid unnecessary overdue loans. 

How to correct credit report errors

There are a few general steps that need to be followed to correct credit report errors.

  • The first thing to do is to log on to their website and fill out the online dispute form. Make sure you mention the control number or a 9 digit identification number. It helps credit recognise reports with errors.
  • Recognise the type of error and provide information about it. You should make sure the information you are providing, such as your name, contact information and PAN, is correct.
  • Once your dispute is successfully submitted, the credit will forward your request to the concerned lenders. Once your lenders give a positive confirmation, the credit will start reflecting the changes in your report.
  • This entire process might take at least 30 days and you will receive an email from credit once your information has been rectified. 

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Specific problems on credit reports with solutions 

For an easier reference, here is a list of common problems associated with the credit reports and possible methods to obtain solutions. 

  • Problem: Poor Credit History

A low credit score on your credit report indicates irresponsible credit behaviours in the past. Frequent delays in your payments, high utilisation of your credit, loans/credit card debts, etc., are some of the reasons leading to a low credit score and it reduces your ability to avail credit in the future.

Solution: Make sure you pay your credit card bills and EMIs on time. Borrow only what you need according to your repayment plan and avoid making minimum payments. If you are unable to work with the current plan, try and work out an alternative loan restructuring. Checking your credit report regularly might help you keep track of your credit expenditure.

  • Problem: Errors in personal Information

These are minor errors that include misspelt names, age, contact information and errors in account details.

Solution: Avail your credit report copy from the credit website and check for possible errors in the report. Once you spot them, you can raise a dispute by filling up the online dispute resolution form.

  • Problem: Days Past Due (DPD)

Days Past Due or DPD means the number of days by which the due payment has been delayed. Anything other than ‘000’ or ‘XXX’ in your DPD section indicates you have delayed your payment and this might give out a wrong interpretation of your credit usage to your lenders. 

Solution: Multiple late payments will lower your credit score. The best way to avoid this is by setting monthly reminders to automatically pay the due amount before the given due date.

  • Problem: Error with the account

There could be a few accounts mentioned on your credit reports but they are actually not yours. These are called errors with account ownership. This could be an administrative error or could indicate fraudulent usage. 

Solution: If there are incorrect mentions of open accounts on your credit report, you need to immediately raise a dispute to avoid further errors, if they are administrative, or to end the fraudulent account, if otherwise.

  • Problem: Overdue for paid off accounts

Your credit report may show an outstanding overdue amount that has already been cleared or there might be an error in the payment history despite your previous regular payments.

Solution: The lenders submit their data to credit once in 30-45 days. If you have gotten a copy of your credit report within this time period and there is an error, this could probably be because your institution still hasn’t submitted the data and it hasn’t been updated in credit records. In case it has been more than this time period, you will have to contact the respective lender institution and ask them to rectify their records and submit the required data.

It is essential to have a high credit score and to attain this, you need to make sure your credit report is up to date and is error-free. Therefore, It is necessary for you to generate your credit report regularly and make sure your credit history is not affected by any of these mentioned errors.

Sometimes, even though you are aware enough, you end up missing the due dates to clear your credit bills. Repetitive mistakes like this and multiple outstanding loans can lead to a very poor credit score. It is always advisable to clear your loans rather than paying high rates of interest with increased delays. With the help of Fibe, you do not have to worry about late payments.  We can help you with financial wellness ideas, credit, or personal loans to fulfil instant cash needs. With our professional consultation, you will not only learn how to manage your credit but also will be able to clear off your loans.

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