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Your credit report plays a crucial role in loan approvals, and it is vital to ensure its accuracy. The Credit Information Bureau (India) Limited (CIBIL™) maintains credit records and produces monthly Credit Information Reports (CIR) and credit scores.
In this guide, we will provide valuable tips to rectify errors in your credit report and maintain a favourable credit score. You can also check your credit score on the Shriram Finance website. Resolving these errors is essential for increasing your chances of loan approval and maintaining your financial well-being.
Understand Your Credit Report
To fix credit report errors, first, learn about the different parts of credit report: your details, contact info, job info, account info (like loans), and how to check your credit report.
- Personal information contains details such as your name, residence, age, date of birth, and PAN card information. Review this section regularly for typographical or clerical errors that may affect the accuracy of your credit report.
- Contact information includes your address and phone number. Ensure that these details are up to date so that lenders can reach you if needed.
- Employment information provides details about your employer and income. Keep this section updated to reflect your current employment status accurately.
- Account information summarises your loans, credit cards, and other forms of credit.
- Check this section for errors or discrepancies in outstanding balances or incorrectly labelled accounts.
- Enquiry information shows the names of lenders who have accessed your credit report recently. Verify that all inquiries got authorised from your side.
By thoroughly checking your credit report for inaccurate information, you can identify potential errors that need to be resolved.
Credit Reports - Access
As an individual, you have the right to access your free credit report. According to the CIRCA Act 2005, you can request a copy of your credit information from any credit institution. The Reserve Bank of India (RBI) has set a fee of Rs.50 for this purpose.
To access your credit report, you can visit the official website of CIBIL™ or other credit bureaus. You can also use Shriram Finance website to check your credit score and download a detailed report. Fill out the online dispute form and provide the necessary details, including your control number found on the top right of your credit information report.
Types of Errors in Your Credit Report
- Errors in account and personal details: Check for inaccuracies in your name, residence, age, date of birth, and PAN Card information. Multiple accounts in your name can also harm your credit score.
- Days past dues (DPD) inaccuracies: DPD refers to the number of days since an account's due payment was supposed to be made. Ensure that DPD labels other than "000" or "XXX" are accurate and reflect late payments accurately.
- Outstanding loans or incorrect balance reporting: Verify that the amount due and outstanding balance for each loan is accurately reflected on your credit report. Incorrect reporting can negatively impact your credit score.
- Errors in credit accounts: Look for closed accounts that are still listed as open or ownership mistakes with open accounts that do not belong to you. These errors can affect how lenders perceive you and impact your creditworthiness.
- Paid-off accounts still showing as overdue: Even if you have made all payments on time, check for the remaining balance on accounts that have already been paid off.
Review your credit report and identify errors
Follow these steps to review your free credit report:
- Check personal information: Review your name, residence, age, date of birth and PAN Card information for typographical or clerical errors.
- Verify DPD accuracy: Ensure that the DPD labels accurately reflect late payments you have made.
- Confirm outstanding loans and balances: Compare the actual amount due and outstanding balance with what is reported on your credit report. If there are discrepancies, report them immediately.
- Identify errors in credit accounts: Look for closed accounts that are still listed as open or accounts that do not belong to you. Contact the lender to correct inaccuracies.
- Check for discrepancies in paid-off accounts: If a previous debt has been paid off but still shows an outstanding balance, contact the lender to update the information on their records and notify CIBIL™ for correction.
Company Credit Information Reports
In addition to individual credit reports, CIBIL™ also produces Company Credit Information Reports (CCR). These reports contain details about companies' credit history and financial health. It is important to ensure the accuracy of this information as well.
Errors in company credit reports can be corrected or updated through the Company Dispute Resolution process. Common types of disputes include inaccuracies in account details, ownership of an account, duplicate accounts, and incorrect fields such as the company's name and address.
If you find errors in your company's credit report, raise a dispute with CIBIL™ by submitting the necessary documents and information through their online dispute form or by writing directly to Credit Information Bureau (India) Ltd.
DUNS Number and Report Order Number
In company credit reports, two important numbers are mentioned - DUNS Number and Report Order Number. The DUNS Number is a unique identification number given to borrowers at a specific location. The Report Order Number is an order number assigned to the company credit report by CIBIL™.
These numbers help in identifying and tracking the credit report accurately, ensuring that the correct information is associated with the company.
How to file a Credit Report dispute request?
- Obtain the online dispute form: Visit the official website of CIBIL™ or contact the credit bureau and download the online dispute form.
- Fill out the form: Provide accurate details, including your control number from the credit report, and describe the error in detail.
- Submit the form: Once you have completed the form, submit it through the designated online platform. You will receive an email notification regarding the status of your dispute request.
- Verify details with banks: CIBIL™ will verify all the details provided in your dispute form with the concerned banks or financial institutions.
- Resolution process: If the dispute is legitimate and requires correction, CIBIL will update your credit report accordingly after receiving confirmation from the banks or financial institutions involved.
By following this process, you can effectively raise a dispute and resolve errors in your credit report.
Conclusion
Errors in your credit report can have a significant impact on your financial well-being. Whether it's a simple mistake or a case of identity theft, taking action to correct inaccuracies is crucial. By understanding your credit report, accessing it regularly, and identifying errors promptly, you can take steps to rectify them.
Remember to review each section of your report thoroughly and contact credit bureaus for disputes when necessary. Maintaining an accurate credit report is essential for your financial well-being and future loan approvals. Contact Shriram Finance for further insights on preserving a strong credit score and managing your credit report effectively.
FAQs
1. What are 2 common errors found on a credit report?
Common errors include incorrect personal information, inaccurate account details, and discrepancies in payment history.
2. Why is it important to correct errors on a credit report?
Correcting errors helps maintain an accurate credit score, which increases your chances of loan approval and favourable interest rates.
3. What is the law regarding credit report errors in India?
The Credit Information Companies Regulations Act 2006 allows individuals to request corrections to their credit reports.
4. Can I pay someone to fix my credit report errors?
No. It is not advisable to pay anyone to fix your credit report errors. You can resolve them yourself by following the proper dispute process.
5. How can credit report errors hurt your credit?
Credit report errors can negatively impact your credit score by providing inaccurate information about your payment history and creditworthiness.
6. How do I know when to report an error on my credit report?
You should report an error on your credit report if you find inaccuracies in your personal or financial information that could negatively impact your financial standing.
