How Wrong CIBIL reports can destroy your financial life

How Wrong CIBIL reports can destroy your financial life

A credit report contains detailed information of the credit you have availed. It will contain information regarding your borrowing pattern and repayment history. Financial institutions will take a look at the report before deciding whether or not to let you avail credit. Now, because these reports play a huge role in the loan application process, any kind of error in the report can ruin your chances of getting the loan application approved. It can also tarnish your image in front of the financial institutions. Hence, it is very crucial to regularly check your credit report to identify errors, if any, and look at the different ways on how to correct CIBIL report.

Errors in the credit report can cause major damage to your financial life. When you desperately need to take out a loan, inaccuracies in the credit report can ruin your chances of getting the loan you wanted to avail. Your home loan, student loan, personal loan or even credit card application can get rejected because of an error in the report. The inaccuracies can bring down your score big time.  It is thus very essential to know how to correct CIBIL report if you spot any errors, as well as how to improve CIBIL score and report. Remember, checking your report on a regular basis and getting it corrected when necessary is one of the ways on how to improve CIBIL score.

Some of the errors that can creep up in your report include incorrect current balance (such as finding the latest payment missing from the report), wrong personal details and incorrectly listed loan outstanding, among others. These errors can be corrected by raising a dispute. However, according to CIBIL, the following fields cannot be disputed – Control Number, Member Name (Unless it is an Ownership Dispute), Account Number (Unless it is an Ownership Dispute), Date Reported and Enquiry Date.

When you have spotted an error in the report, you can submit a dispute with the credit bureau. This is the first step on how to correct CIBIL report. After initiating a CIBIL dispute, you would be required to fill an online dispute form, where you need to mention the type of inaccuracy. The 9-digit control number in the credit report must be entered in the form. The credit bureau will then reach out to the respective financial institution who will state if the dispute is valid or not. If it is then the rectification will be made when the financial institution submits the correct credit information. Once the dispute is accepted and the information updated, the bureau will send the client the updated report. Any dispute can take up to a month to get resolved. It is important to note that the credit bureau does not make any changes in your report directly. The legitimacy of the dispute will be determined by the respective financial institution, which then will authorize the credit bureau to make changes.

Both your credit score and report play a big role in your financial life. Hence, it is necessary to have detailed knowledge about how to correct CIBIL report as well as how to improve CIBIL score and report. Some of the other different ways on how to improve CIBIL score and report, besides checking for inaccuracies in the report, include maintaining a healthy credit mix, making repayments on time, refraining from sending out multiple loan applications at once etc. Keep in mind that by putting into practice the different methods on how to improve CIBIL score, your credit score will not jump up instantly. It will take some time till you can get it up to at least 750. One of the most essential things you need to do after having reached your goal is maintain a good score.

The importance of maintaining a healthy report cannot be stressed enough. Get into the habit of checking your report at least twice or thrice a year to make sure the details listed on it are correct. Put into action the above mentioned measures on how to correct CIBIL report if you spot any errors. If you think that you have been a victim of identity theft, you must monitor your report more often. Knowledge about how to correct CIBIL report and how to improve CIBIL score can go a long way in making your financial journey a smooth one.

 

Advertisements