Posted on: September 16, 2015

How to Resolve Your Credit Report Disputes

Resolve Credit Report Disputes

If you are planning to get a loan of any kind, your credit report will be the most important document that will help you in getting a quick and hassle-free loan. But any red flags such as a wrong spelling of your name or a PAN number in your credit report can delay your loan approval process or may also lead to rejection of loan. So, it is advisable to check your credit report before you apply for any kind of loan, just to double-check if all information mentioned in it is correct or not.

 

You can get your credit report from any of the credit information bureaus — Credit Information Bureau of India Limited (CIBIL), Equifax and Experian, check it for errors and get them rectified.

 

First, know the possible errors

  • Incorrect loan balance

Your credit report may show a loan balance of higher amount even though you have made part payment or paid your loan fully.This may occur because your lender has not informed the credit bureau about your payment.

 

The credit bureau doesn’t collect your information on its own. Your lenders bank or non-banking finance company (NBFC) provides information to the bureau which collates everything into one credit report. Error may occur during the collating process. Also, banks and NBFCs take 3045 days to send all data to the credit bureaus. So, any payment made by you against any loan will not be reflected instantly. Suppose, if you make a payment against your loan and ask for your credit report before 45 days, there are chances that it will not show the payment made.
 

  • Inaccurate details         
  1. There is a possibility that your name is spelled incorrectly or the PAN card number mentioned is not yours or any personal, employment or account related information is not correct.
  2. The credit report is showing a loan that you never availed.
  3.  Your credit report may show an incorrect status as “written off” or “settled” despite having repaid all your loans on time.
  4. Your Days Past Dues (DPD) section may show delayed payment despite the fact that you have made all your payments on time.

Process of dispute resolution

The following diagram will help you in understanding of the whole process better.

Resolve Credit Report Disputes

Credit record-keeping agencies can’t make any changes on your credit report on their own. Any dispute you raise will be sent to the credit institution and upon approval, changes will be incorporated in the credit report. For getting your credit report corrected you will have to provide information such as your name, address, date of birth and control number (it is your credit report identifying number) to the credit bureau.  You will have to initiate the dispute with the credit bureau by submitting an online application. The credit bureau will take up the issue with the bank or NBFC. The lender will check if the dispute is valid or not. In case of a valid dispute, it will inform the credit bureau and the changes will be done. The whole process will take about a month’s time.

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2 Comments

  • Why my score goes down if I see the CIBIL report to correct myself.
    Is it wrong for a delinquent person (so called by the CIBIL writers) to improve his image by looking at his faults as coined by the CIBIL rating authority? Ir his right to come back to main stream sealed for ever although he paid up his all dues ? whether CIBIL authority has no consideration for the natural calamity or Govt’s poor financial status to pay to its contractors etc.?

  • Process of dispute resolution is totally misleading to to the core. We tried several time to raise a dispute on an amount of balance nil, was again shown & written off, but we could not,bcoz their system is so designed that first they take the information and control no, after that instead of paving for information on dispute, it ends and the registration of dispute is done on personal information instead of the actual dispute. Disgusting rating agency .

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