How To Fix Credit Report Errors?

Errors in your credit report can reduce your ability to secure credit or negatively influence the interest rates offered to you on loans. Thus, it is crucial to check your credit report regularly and get an inaccuracy, if any, corrected on a priority basis. Here is a brief guide on how you can fix your credit report errors.

A credit report is a summary of your credit behaviour based on information provided by financial institutions with which you have had transactions. It includes details of your credit accounts, your debt repayment history, outstanding balance, credit utilization, and information on credit inquiries you have made. When you approach a lender, they will check your credit report to determine whether you are financially reliable enough to repay a debt.Errors can crop up in your credit report if your lender fails to share information with the bureau, or the bureau makes errors in updating your information. Some common mistakes that you can find on your credit report include:

• Wrong personal information
• Duplicate loan accounts in which the same account is registered more than once
• Erroneous credit limit
• Incorrect account status where the current balance is not updated, or a closed account shows as active
• Faulty overdue amount
• Inaccurate ownership where an account that does not belong to you is registered under your name

• First, you need to contact the credit bureau that generated the report.
• You can visit their website and fill up their dispute resolution forms to initiate a dispute request.
• The bureau will send the dispute details to the relevant financial institution for verification.
• Once the credit institution verifies the dispute and sends the corrected information, only then the bureau will update your report and resolve the dispute.

Rectifications of credit report errors take time because your report is corrected only after the credit institution authenticates the dispute. The process can take between thirty to sixty days. If you raise a dispute after a lender rejects your loan application due to some error in your report, you may not get access to credit on time. Hence, you should inspect your credit report frequently and report errors immediately to be able to arrange funds whenever you need it.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.