How often do you read your credit reports? Probably, the last thing that you would like to read, yeah, boring enough. Isn’t it? However, you should not ignore that part because it is important to read your credit reports! No wonder, your credit reports have some wrong information in it that’s impacting your credit score. And, even single wrong information or detail in the credit reports can act as red flags, and quite obviously, lenders will think twice before they lend you any loan.
But yeah, if you go through your credit reports, then rightfully you can fix them as well. So, here’s a guide for you to understand what are the common credit report errors that you need to know and substantial steps to be taken to resolve them before time.
What is Credit Report?
Basically, a credit report is a summary of all your credit history, which determines your creditworthiness. Every lender, especially a potential lender uses credit reports to determine whether to extend credit or not and on what terms.
A credit report is a snapshot of everything you have done with your credit. Even a single bit of wrong information in credit reports can affect your chances of getting any credit. Hence, it becomes vital to check credit reports for errors. So, here’s the short guide for you to read and evaluate your credit reports.
How to check your credit reports?
To be capable of discovering and fix errors, you should keep a close check to your credit score reports. In India, there are four credit score bureaus which can be certified via way of means of the RBI to offer credit score scores: CIBIL, CRIF High Mark, Experian, and Equifax. It’s vital to keep an eye fixed on all of them, as they’ll include barely extraordinary information.
You can request your credit score record from every of those credit score bureaus, at the least once in a year. All you need to do is create an account with the credit score bureau, then answer a few questions for the verification process and get your credit score reports.
Common Credit Report Errors You Need to Watch Out
Let’s take a look at the most common errors in a credit report, and how you can take action against them.
Personal Details
Check your credit reports for name and address mistakes. On the off chance that your name has changed or you have moved, these significant details have to be updated with the credit agencies or bureaus. Moreover, your social security number plays a pivotal role in accurate credit detailing.
Account Details
You have to make sure that each record showing up on your credit report is really yours. Also, check the current balance to maintain the accuracy because in any case, if there’s any outstanding balance left, then it will definitely affect your credit score. Even the credit limit can be misreported if you didn’t check properly. If in any case, credit limits are misrepresented in your credit reports, your credit score can drop at a higher percentage of the available credit. So, if you are closer to using all of your available credit limit, then you will more likely to default on a loan.
Mistaken Accounts
First of all, it’s important to review all the open accounts listed on your credit report. Does likewise account show up more than once? Does the entirety of the records have a place with you? It’s not strange for another person’s record to show up on your record. Now and again, new records can be a sign of data fraud. Recuperating from fraud can be a long and troublesome cycle, yet getting it rapidly can diminish the effect. So, in case you’re dubious, call your lender right away.
Duplication Errors
Do you know that even duplicate accounts can raise a credit utilization ratio? It’s crucial to check your debts and it’s not listed more than once in your credit report as it can impact your credit reports and credit history, possibly under different names and creditors. Hence, do check for such minor details in your credit reports because these are some of the common errors.
Credit Limit Information
Credit Utilization Ratio (CUR) is a measure of credit available to you versus the amount you are using. It’s essential that the credit bureau must have accurate information about your credit limit and how much you owe to the lenders. Because If it’s not clear to the credit bureau, your credit utilization ratio can appear to be higher on your credit history that actually it is, which can directly impact your credit reports.
To sum it all up, checking your credit reports on a regular basis is essential to ensure that the information in it is just accurate, and of course, for the financial well-being. Even the tiniest of errors or mistakes in the credit reports can impact your lender’s decision for loan/credit approval. Therefore, don’t take any chance and if you find any errors in your credit reports, simply contact the credit bureau or get in touch with the experts of Credit Triangle to discuss your CIBIL report dispute status with us! Our team of experts can help you to understand your CIBIL report, resolve the issues and improve your CIBIL Score as well so that you can get quick approvals for your business or personal loan.