Correcting errors in credit report

Send a rectification request online to the bank or reach out to them directly

Your credit report plays a vital role when you apply for a loan. Before banks approve your loan request, they look into the credit score provided by the credit bureaus. What’s more interesting is that interest rate on loans in some banks also vary based on your credit score.

What it contains

A credit report contains the credit score of the borrower ranging between 300 and 900. Besides, personal information such as name, gender, identity details (PAN, voter ID, aadhaar etc.) address, phone number and employment information are also present. Details of loans availed by you in the past, the balance amount remaining to be paid back and the ownership type (individual, co-borrowed or guaranteed) are available too. The report will also have the number of times you have applied for a loan with banks, including amount applied for.

Usually, credit reports are generated or created based on the request from the banks. Banks provide the information to the credit agencies and get the credit report. Individuals may mostly not have access to their credit report if the report is requested by bank.

The bankers provide copy of the credit report only when the loan of the applicant is rejected. However, individuals can also have access to the credit report independently.

Hrushikesh Mehta, Vice President & Head, TransUnion CIBIL, says individuals have to apply to the credit bureaus directly for a copy of their credit report. The report is given for free once in a year; further requests entail a nominal fee.

Common errors and correction

Are there any chances that your credit report could have mistakes? The answer to this question is, unfortunately, yes. There could be errors in the credit report, due to which the loan application can be rejected or loans may be sanctioned at higher interest rate, says Hrushikesh. However, you need not panic. Mistakes in the credit report can be easily corrected.

Common credit report errors can be categorised into account-related errors and personal information errors, says Vaishali Kasture, MD, Experian Credit Bureau.

Account-related errors include late payment, which could be reflected as ‘due’ in the credit report even after payment; having a credit card or loan account listed wrongly in your name or a loan account which has already been closed by you but listed as unclosed by the provider. Personal information errors includes wrong account/name, incorrect address and inaccurate employer information.These errors in the credit report can be corrected at any time, as and when you take cognisance of it, without paying any fee.

Vaishali says, every credit bureau provides individuals with the option of resolving disputes in their credit report. However, any change to the credit report can be done only after concurrence from the bank.

To get the credit report rectified, you will have to send an information rectification request to the relevant bank through an email or reach out to them directly. An application form for this purpose can be downloaded from the credit bureau’s website.

This has to be filled in and sent to the bureau along with the supporting documents; the bureau in turn will pass on the details to the bank and ensure that it is followed up and corrected. This correction will then reflect in the individual’s credit report.

As per the Credit Information Companies (Regulation) Act 2005 (CICRA 2005), the process of updating of the credit information should be done within 30 days of request, says Vaishali.

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