Spot An Error? Guide To Fixing Mistakes On Your Credit Report

Your credit report is one of the most important financial papers, and it is a report card of your borrowing and payment history. This information is used by lenders, landlords, and even prospective employers to determine your creditworthiness. That's why ensuring your credit report information is correct is so vital. Errors can occur and, if not corrected, can hurt your chances of securing a loan, renting a home, or even getting hired. 

The good news is that you can challenge any data on your credit report that you think is incorrect. The process may look a bit intimidating, but it's actually easy. Here's a step-by-step guide to walk you through the process and get those mistakes corrected. 

Step 1: Obtain A Copy Of Your Credit Report 

The first step is to take a copy of your credit report. There are four principal Credit Information Companies (CICs) that have been licensed by the Reserve Bank of India (RBI): CIBIL, Experian, Equifax, and CRIF High Mark. You can get one free credit report from each of them annually. You can most probably order these reports from their respective websites.  

Take some time to read each report from the four bureaus very carefully. Occasionally, a similar mistake may show up on several reports, whereas another mistake could be unique to one. 

Step 2: Identify The Errors 

While checking your credit reports, keep an eye out for anything that looks incorrect. This may include: 

• Incorrect personal details: this may be a wrong name, address, date of birth, or PAN number. 

• Account detail errors: search for accounts you don't recognise, erroneous account numbers, or erroneous opening or closing dates. 

• Wrong payment history: verify if payments are reported as late when you paid on time or accounts reported as in default when they weren't. 

• Duplicate charges: occasionally, the same debt could be reported more than once. 

• Someone else's accounts: it could be that information of a person who has a similar name has been confused with yours. 

Create a thorough list of all the mistakes you discover, identifying which credit bureau's report has each error. 

Step 3: File A Dispute With The Credit Bureau(S) 

After you've located the mistakes, you must submit a dispute to the concerned credit bureau(s). Generally, you can do this online via their websites. Most CICs will have a specific section to file disputes. You'll typically be required to furnish the following details: 

• Your personal details (name, address, contact details). 

• Information about the error(s) you are objecting to, specifically the account number, the exact field that is in error, and what you feel should be the correct data. 

• A concise reason why you feel you are being given the wrong information. 

• Copies of supporting documents, if possible, will be needed to verify your claim. This may be bank statements, payment slips, or lender letters. 

Be concise and direct in your dispute letter or online form. Clearly delineate the incorrect information and how it is wrong. Enclosing photocopies of supporting documents can greatly help your cause. Keep copies of everything you mail and record the date you mailed your dispute. 

Step 4: The Credit Bureau's Investigation 

After receiving your dispute, the credit bureau is bound to conduct an investigation on the matter. They will usually refer your dispute and supporting evidence to the lender or organisation that made the report. The entity will investigate the information and send their findings to the credit bureau. 

The credit bureau normally has a deadline (usually 30 days) to finish their investigation. 

Step 5: Review The Outcome 

Once the investigation has been finalised, the credit bureau will send you the results. If they discover that the information was indeed inaccurate, they will update it on your credit report. They must also mail you a revised copy of your report with the updates. 

If the credit bureau determines that the information is indeed accurate, they will notify you of their determination and the reasons for it. You can request further clarification and provide more information if you still feel the error has not been cleared. 

Step 6: Follow Up If Necessary 

If you do not receive a response from the credit bureau within the given time limit, or if you feel that the decision by their investigation is not satisfactory to you, don't lose heart. You are entitled to follow up with them. You may also file a complaint with the Reserve Bank of India (RBI) if you feel that the credit bureau has failed to process your dispute fairly. 

Correcting errors on your credit report is key to good financial health. It is a good idea to check your credit reports from all four bureaus every year to make sure they are accurate. Being proactive and correcting any mistakes right away can help safeguard your creditworthiness and ensure a positive financial future.