It’s time to clean your Credit Report

Credit Reports are the reports explaining your financial behaviour to the lenders. The information in the credit report includes the place you live, number of credit accounts owed by you, how you pay your dues. Not only this, it also contains information if you have filed any bankruptcy or have you been sued. All these information provided in the credit report is sometimes called Credit History or Credit Files of any individual.

Credit Reports are issued to individuals and lender companies by credit bureaus. In India, CIBIL, Equifax and Experian are those bureaus that issue credit bureaus.  It is important to get credit reports from all the three credit bureaus to get an overall idea of the creditworthiness.

If the information provided in the credit report is incorrect or it contains errors, it must be corrected in time. You have the right to ask the lender to get the incorrect information that is appearing in your credit report to get it corrected in their record as well as update the same with the credit bureaus. Also you can ask for a free copy of the updated credit report.

There is a defined law to protect you and your creditworthiness. You should not wait until you will be denied for any credit. Few hours spent to read your credit report can save most of your time and aggravation later.

Following are some steps you should take to that will help you to clean your report:

•You should take a photocopy of your credit report, highlight the errors in it and send it to the bureau along with a letter of explanation of the errors.

•You should also contact your creditors regarding the errors that have been appeared in your credit report and ask them to correct the same.

•You should document all the communication that happened with the credit bureaus and the creditors too.

With fraud and identity theft, it is possible that someone can use your identity for obtaining credit on your name. This can affect your creditworthiness.

Checking your credit report timely can help you identify errors or identity thefts that can negatively affect your credit history.

Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy.