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How Can Regular Review of the Credit Report Help You Spot And Correct Cibil Score Errors?

Read any financial blog, and you will be taught the same thing, do regular credit monitoring to ensure your cibil score doesn’t get affected, and if you do indeed spot an error, a timely check can prevent an unnecessary cibil dispute. Regular reviewing your credit report ensures any misinformation or error in your report gets spotted that ensures your credit score doesn’t get lowered. Any misinformation in the report can even lead to the rejection of your loan and credit card applications. This could hamper your plans of getting a loan in case you do require emergency funds. 

Well, the thing is, mistakes in credit scores or reports are very common, but the worst part is if such errors remain unnoticed or are not corrected on time, they can adversely impact your financial report card. We have listed down reasons why you must review your credit report at regular intervals to prevent cibil disputes: 

Shows your creditworthiness to the next lender: Credit bureaus calculate your credit score based on information provided by the banks you have availed loan or credit from. If you are planning to get a different credit card in the future, it is imperative to check your credit report quite often to get a fair idea about your creditworthiness, especially before submitting any credit application. When you do credit monitoring, it will give you sufficient time to take corrective measures and rectify errors that, if you don’t do, can make the lender reject your loan application. 

Helps you detect numerous errors on time: As a credit cardholder, you have to understand any error on the report can damage your credit score, and if you don’t want to get into a cibil dispute, a periodic review of your credit report is a must. Common credit report errors include but are not limited are errors in credit repayment details, personal information, and credit account details. 

Helps you identify unknown hard inquiries: Whenever we submit any credit application, the lender pulls out your credit report from the credit bureaus to assess our creditworthiness. When a lender initiates inquiries, they are treated as hard inquiries, which result in lowering your credit score by a few points. Hence, if in the future you spot any unknown hard inquiry in your credit report, immediately reach out to your bureau and get it rectified. What you can do is, instead of directly submitting applications to different lenders, consider applying through online financial marketplaces. While such platforms also fetch your credit report from the bureaus, these inquiries are termed as soft inquiries which do not harm your credit score. 

Helps you keep a check on your credit utilization ratio: For the unversed, CUR is the credit limit utilized by you against the total credit limit available. Lenders usually prefer lending to those credit card users who have CUR within 30%. It is because breaching this mark can not only lower your credit score but also makes you look credit hungry. If you find yourself frequently breaching the CUR, you can connect with the bank, opt for an additional credit card or else request for an increase in credit limit. This will help you reduce your CUR. 

Detect identity theft: It refers to the deliberate misuse of an individual’s personal information to conduct financial transactions in their name. Usually, fraudsters wrongfully obtain a date and submit an application for a loan or credit card in someone else’s name. As you know, your credit report records all the credit-linked inquiries and transactions, a timely credit monitoring would help you identify any such fraudulent credit enquires in your harm so that you can timely report to the bureau. 

Is there any way to solve CIBIL report disputes?

Now the question that must be there in your mind is what to do if you do happen to spot an error. Well, you have to fill out an online Cibil dispute form which is available freely at the official CIBIL website. Having a control number( a nine-digit number found on the top right of the credit information report) for the purpose is a prerequisite. 

  • After logging onto their website, fill out a formal and detailed online dispute form. Provide information under the type of error you spotted on the form to help the authority understand the issue. 
  • Following submission, CIBIL will forward this request to the concerned lenders. In the meanwhile, customers will get an email notification regarding the status of the request dispute. 
  • In case you are not satisfied with the result of the first cibil dispute request, and you can initiate a second time. 
  • Only after receiving confirmation (that is too positive) from the lenders CIBIL will initiate the rectification process to the report. 

The entire process will take at least a total of 30 days, and you must file a cibil dispute if you spot an error. Even if you are not planning to apply for a loan or credit card, having a good CIBIL score is important, and you must ensure your CIBIL score is as high as possible for that purpose; no errors should be present in your report. In case your CIBIL report correctly reveals an unpaid balance, settle it as soon as you can. Do not let your credit card balance linger since this would not only hurt your CIBIL score but also become expensive to pay off due to the interest rate it attracts. 

So we are saying, 

Your credit history and credit scores are two important pieces of information that are important to your overall financial wellbeing. Regular credit monitoring can help you understand your current credit position. Among other information, lenders use your credit history and credit scores before making any lending decisions concerning loan terms and interest rate, as they would want to know how likely you are to pay the money back to the lender. Because of this, it is important to regularly check both your credit scores and your credit reports to ensure the information given on the credit report is accurate and complete.

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